Maps
Magazine

TRADE & ECONOMY

PIA Privatization Hits Dead End as Key Bidders Exit
No foreign buyers, AKD Group exits—PIA privatization in crisis. Employee bids rejected, unions vow legal battle over transparency.
ND
by News Desk
2025-06-20
PIA Privatization Hits Dead End as Key Bidders Exit

The federal government’s plan to privatize Pakistan International Airlines (PIA) has suffered a serious blow as no foreign investor group showed interest in the national carrier, while the AKD Group, the country’s largest business conglomerate involved in the process, also withdrew from the next phase.

According to official sources, out of eight bidding consortiums that initially submitted expressions of interest, three—including AKD Group, Sardar Ashraf D. Baloch Company, and Rafiq Engineering Company—have been eliminated during the shortlisting process.

Adding to the controversy, the Privatization Commission has rejected a proposal by PIA employees, who attempted to buy the airline as a collective body. This move has sparked anger among staff and raised fresh concerns about the transparency of the privatization process.

Safdar Anjum, Secretary General of SASA (Senior Staff Association of PIA), called the rejection of the employees' bid “illegal” and confirmed that stakeholders would challenge the entire privatization process in court.

Similarly, Ali Lashari, General Secretary of the Pakistan International Airlines Corporation Board Association (PIACBA), announced that the association would also seek legal recourse, citing questionable practices by the Privatization Commission. “Their conduct has raised serious questions about the fairness and openness of the entire procedure,” he said.

The repeated failure to attract credible international investment, coupled with growing internal opposition and legal threats from employees, poses a significant setback to the government’s attempt to offload the debt-ridden airline.

The development comes at a critical time when the country is facing economic pressure from international lenders like the IMF, who have often advocated for structural reforms and privatization of loss-making state-owned enterprises.

So far, the Privatization Commission has not issued a formal statement in response to the backlash, but sources indicate that further delays and legal complications may derail the process even further.

 
Tagged:

PIA

PIAPrivatization

PakistanAirlines

AKDGroup

PrivatizationCommission
Share News: