by Ayaan Salman
The legacy of Pakistan’s national flag carrier is unforgettable. For decades, Pakistan International Airlines has flown around the globe, with operations ranging from the scenic Scandinavia to the vibrant metropolis of New York City. From leasing aircraft to Emirates for their initial operations to breaking flight-time records, PIA has a history of being one of the greats in the airline industry. Sadly, politics and nepotism, combined with financial losses and debts in consecutive fiscal years, have left a stain on the airline’s legacy.
On 23rd December 2025, a consortium led by Arif Habib Group acquired 75% of PIA’s shares for about PKR 135 billion. This came after multiple privatisation attempts in the past that failed due to low offers. The previously state-controlled airline was met with competition from other private airlines in the market, such as Fly Jinnah and AirSial, with lower prices and better operational efficiency. Hence, the government decided to privatise the loss-making airline as part of a broader economic reform agenda.
Before privatisation, the state absorbed the airline’s accumulated debts and liabilities, adding upto roughly PKR 670 billion, to display a cleaner balance sheet to the potential buyer. PIA Holding Company (PIAHLCA), listed on the Pakistan Stock Exchange, has seen an increase in market share price during privatisation discussions, displaying a positive shareholder and investor confidence in the airline’s future.
On a global level, airline privatisation has resulted in increased efficiency and profitability due to cost-cutting and the presence of competition. Examples include Air India’s sale to the Tata Group in 2022 and privatization of British Airways under the Thatcher administration. Both airlines saw a spike in efficiency and potential profitability, as well as additions to their fleet.
Due to privatisation, Pakistan International Airlines may see route optimisation with more flights operated to the demanded hubs across the country and globally. Moreover, privatisation can enhance the cleanliness and the airline’s fleet, as well as its long concerned factor, safety and maintenance.
With an increasing trend in PIA’s route restoration across Europe, the privatised airline has announced the resumption of flight operations to London Heathrow from March 2026, working towards restoring its long-celebrated legacy and is in talks with the United States for restoration of its American operations.