Government Assures Job Security as PIA Privatization Moves Forward
The federal government has assured that efforts are underway to protect Pakistan International Airlines’ (PIA) current workforce of around 6,700 employees as part of the ongoing privatization process. Officials confirmed during a National Assembly Standing Committee on Privatization meeting on Monday that retaining the maximum number of employees remains a top priority.
Golden Handshake Option May Be Offered
To support the transition, authorities revealed that a golden handshake may be offered by the incoming buyer. Additionally, the Privatization Commission has proposed a minimum 18-month retention period for existing staff, during which no reduction in employment terms or benefits will be allowed. Improvements to employee facilities are also being considered.
Privatization Timeline and Bidders
The privatization deal is expected to be finalized between October and December 2025. Officials shared that four entities have been pre-qualified for the process:
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Lucky Cement Consortium
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Arif Habib Group
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Air Blue
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Fauji Fertilizer Company
The vetting process for these bidders will begin on Tuesday, with shortlisted parties gaining access to PIA’s virtual data room for due diligence. Authorities aim to complete this phase within 60 days, faster than the initially planned 60 to 90 days.
Regional Coordination and Fleet Expansion
The committee has also directed the Privatization Commission to coordinate with the chief ministers of Punjab and Khyber Pakhtunkhwa regarding the privatization process. Committee Chairperson Farooq Sattar noted that some of the pre-qualified bidders have previously shown interest in acquiring the national airline.
Officials added that the reopening of PIA’s Europe routes is expected to boost investor confidence. Plans are in place to expand the fleet from 19 to 40 aircraft post-privatization.
Financial Performance and Transparency
During the session, a member raised concerns over a reported Rs. 4.6 billion net loss despite earlier claims of improved performance. In response, PIA’s CEO acknowledged improvements in the airline’s financial condition but did not provide detailed figures.
It was also disclosed that the group that had previously submitted a Rs. 10 billion bid is not part of the current pre-qualified list.
