Inclusion of Fauji Fertilizer Group in PIA-Buying Consortium Would Be Beneficial, Says Privatization Adviser

Islamabad: Prime Minister’s Adviser on Privatization, Muhammad Ali, has said that the privatization of Pakistan International Airlines (PIA) will lead to improved performance, increased investment, and a reduction in the financial burden on the government. He stated that if the Fauji Fertilizer Group becomes part of the consortium purchasing PIA, it would be beneficial for the national airline.

Addressing a press conference on Wednesday, Muhammad Ali said that the government would receive Rs55 billion from the privatization of PIA. Federal Minister for Information and Broadcasting Attaullah Tarar and other senior officials were also present on the occasion.

The adviser said that PIA’s biggest asset lies in its routes, adding that the airline serves around four million passengers annually and currently holds a 30 percent market share. He noted that PIA once operated 50 aircraft, which by now should have increased to 100, but past mismanagement prevented growth. He expressed confidence that privatization would help restore PIA’s lost glory and also contribute positively to GDP growth.

Muhammad Ali congratulated the nation on the successful completion of PIA’s privatization process and credited Prime Minister Shehbaz Sharif, Deputy Prime Minister and Foreign Minister Senator Mohammad Ishaq Dar, and Army Chief Field Marshal Syed Asim Munir for their guidance and support throughout the process. He also congratulated the Arif Habib Consortium for submitting the highest bid and praised the role of financial advisers involved in the privatization.

He said that the successful completion of the process reflects the government’s serious efforts, adding that the privatization was facing unjustified criticism. During the briefing, he gave a detailed presentation on PIA’s current status, stating that the airline has a total fleet of 33 aircraft, of which 19 are operational. These include 16 Airbus A320s, 11 of which are operational, and 12 Boeing 777s, of which six are operational. He added that 24 aircraft were acquired before 2010, seven between 2010 and 2013, and two in 2017. Of the total fleet, 20 aircraft are owned by PIA, while 13 are on lease.

The adviser said PIA’s performance began to decline after 1990, and previous privatization attempts in 1999, 2005, and 2024 were unsuccessful. However, the privatization process was finally completed successfully on December 23, 2025. He said the airline had been facing annual losses of billions of rupees since 2015 due to a lack of digitalization and inability to compete globally.

Muhammad Ali said that although a technology boom took place after 2000, PIA failed to benefit from it. He added that expressions of interest were published on April 24, 2025, and the privatization process concluded in December. He clarified that liabilities worth Rs182 billion have been transferred to the new buyer.

He further explained that the government would receive Rs10 billion in cash, while the value of its remaining 25 percent shareholding amounts to Rs45 billion, bringing the total government benefit to Rs55 billion. He rejected the impression that the government would receive only 7.5 percent in cash from the bid, clarifying that the retained shareholding was also part of the overall value.

The adviser emphasized that after privatization, the government would no longer operate an airline business for the next 15 years, although provinces could do so if they wished. He said the government’s role is not to run businesses, and reduced government involvement in the aviation sector would improve competition, end monopolies, and enhance service quality.

Speaking on the occasion, Information Minister Attaullah Tarar said that the privatization of the national airline was carried out transparently and described it as a historic moment. He said the process was broadcast live on the prime minister’s instructions, noting that previous attempts to privatize PIA had failed.

Tarar thanked Miftah Ismail for terming it an excellent bidding process and said that, by the grace of Allah, the national airline had finally been privatized. He added that Prime Minister Shehbaz Sharif and Field Marshal Asim Munir played a key role in the successful completion of the process.