The Supreme Court of Pakistan has withdrawn its earlier order halting the privatisation of Pakistan International Airlines (PIA), allowing the government to resume the process of selling the national carrier.
A Constitutional Bench, led by Justice Amin-ud-Din Khan, issued the ruling today, effectively closing the case. Previously, the court had placed a stay on PIA’s privatisation, but today’s decision lifts the block and clears the path for the process to move forward.
During the hearing, the Additional Attorney General informed the bench that the government had secured approval to hire new professionals for PIA. While the privatisation had been delayed, the airline’s flight operations were no longer restricted, the government official confirmed.
Justice Khan acknowledged that the government could now receive better rates for PIA’s privatisation, but he emphasized that the entire process should be conducted transparently. Justice Jamal Mandokhail further remarked that the government must ensure compliance with the court’s order and keep the court informed throughout the process.
The Additional Attorney General confirmed that a request had been filed with the court to remain updated on the privatisation process, and the court expressed its confidence in the government’s handling of the sale.
In earlier statements, Privatisation Minister Abdul Aleem Khan had cited a lack of cooperation from the Ministry of Finance as a major obstacle in the failed attempt to sell PIA. He pointed out that despite the government’s efforts, the airline’s balance sheet still carried a Rs45 billion negative equity, making it unattractive to potential bidders. Khan also criticized the caretaker government for structuring a faulty privatisation deal that failed to address the airline’s liabilities.
Khan highlighted that even Gulf countries were unwilling to acquire PIA in its current state. The bidders, he said, had requested exemptions from 18% sales tax on aircraft leases and wanted Rs45 billion in additional liabilities to be written off. However, these demands were not met, and the government failed to engage in meaningful negotiations.
A previous attempt to sell PIA to a single bidder, a real estate developer, collapsed when the offer of Rs10 billion fell far short of the minimum reserve price of Rs85.03 billion. The bidders had also requested the government to offload tax liabilities and financial obligations, but the process faced resistance from key departments, including the Federal Board of Revenue (FBR).
The FBR’s refusal to waive taxes, particularly due to concerns about the implications for Pakistan’s International Monetary Fund (IMF) program, further complicated the privatisation bid. Despite these challenges, the government remains committed to moving forward with the sale of PIA under transparent terms.
