Pakistan’s government has informed the International Monetary Fund (IMF) of its intention to privatize Pakistan International Airlines (PIA) by July 2025, aiming to address the airline’s financial challenges. This move is part of a broader strategy to privatize several state-owned enterprises, including Zarai Taraqiati Bank Limited (ZTBL) and three power distribution companies (DISCOs).
A previous attempt to privatize PIA in October 2023 failed, with only one offer significantly below the government’s minimum asking price. In December 2023, the interim government announced plans to privatize the airline, aligning with its policy to divest loss-making entities. Additionally, in November 2024, the European Union Aviation Safety Agency lifted a four-year ban on PIA, allowing it to resume operations in the EU, which is expected to enhance the airline’s valuation ahead of privatization.
The government is also evaluating options for PIA’s Roosevelt Hotel in New York, following the premature termination of a $228 million lease agreement by the New York City government. The Cabinet Committee on Privatization is considering whether to sell the property outright or enter into a joint lease agreement.
