Deal signed to officially put PIA under new management
2026-01-30 - 02:56
PM Shehbaz Sharif and Field Marshal Asim Munir witness the exchange of PIA’s privatisation documents.—White Star • PM says airline’s ‘glory days’ to return under Arif Habib-led consortium • NA panel seeks detailed report on PIA accord, employee safeguards ISLAMABAD: Prime Minister Shehbaz Sharif on Thursday said the “glory days” of Pakistan International Airlines (PIA) would return under the new management, as the government signed transaction documents for the airline’s privatisation. “PIA will reach new heights under the leadership of the Arif Habib Consortium. The airline will improve its performance, punctuality, cabin service and professional standards,” the prime minister said while speaking at the signing ceremony. The ceremony was attended by Chief of Army Staff and Chief of Defence Forces Field Marshal Syed Asim Munir, Deputy Prime Minister Ishaq Dar and federal ministers. PM Shehbaz congratulated the nation on the signing of the transaction and said Arif Habib and his team were among Pakistan’s “distinguished business ambassadors” who had contributed to the country’s progress. He said the new owners’ first priority would be passenger comfort and safety. Recalling the airline’s past, the prime minister said PIA had been at its peak in the 1960s, with a recognised presence across Pakistan and in world capitals. He also praised the role of federal ministers and Adviser to the Prime Minister on Privatisation Muhammad Ali in completing the transaction. The prime minister said the privatisation process was conducted transparently and telecast live. He said the bidding closed at Rs180 billion, of which the consortium would spend Rs135bn on improving PIA. He hoped that the new PIA owners would help the airline regain its past glory through “untiring efforts and innovation”. Mr Ali explained the salient features of PIA’s privatisation and said the public would benefit from improved services. NA body seeks details Meanwhile, the National Assembly Standing Committee on Privatisation on Thursday sought further clarification and comprehensive information on the transaction from the Privatisation Commission. Chaired by Dr Muhammad Farooq Sattar, the committee asked the commission to submit a comprehensive report at its next meeting, including employee participation, consultation mechanisms and grievance redress. The meeting was convened to review ongoing privatisation transactions. The secretary of the privatisation ministry briefed the committee on the PIA process, including its stages and the current status of the deal. The committee was also briefed by the power ministry on the installation of Advanced Metering Infrastructure (AMI) meters. It was told that as of Jan 9, a total of 1,614,296 AMI meters had been installed across distribution companies, surpassing the target of 1.5 million. The panel was also briefed on Pakistan Re-Insurance Company Limited (PRCL), which is listed on the Pakistan Stock Exchange and remains majority-owned by the government. The committee was told that PRCL is planned for partial privatisation through a secondary public offering, but the transaction has been deferred due to unfavourable market conditions and valuation concerns. Regarding Sukkur Electric Power Company Limited (Sepco), the committee was informed that the government was considering private-sector participation as part of power sector reforms, given the utility’s high losses, weak recovery and governance issues. Outright privatisation was not considered feasible at this stage, while options under consideration included a management contract or partial privatisation, supported by preparatory reforms and financial restructuring. The committee stressed that consumer protection, Nepra oversight and employee safeguards must remain integral to any reform process. Amin Ahmed also contributed to this report Published in Dawn, January 30th, 2026