Muhammad Ali bullish on PIA potential

December 22, 2025 (MLN): Striking a bullish tone during an interview on the upcoming live bidding for Pakistan International Airlines (PIA), Muhammad Ali, Adviser to the Prime Minister on Privatisation and Chairman of the Privatisation Commission, highlighted the national carrier's substantial untapped commercial potential.

He added that PIA can be transformed into a profitable enterprise under private-sector management and professional governance.

The minister said that despite years of financial stress, PIA remains one of the most strategically positioned airlines in the region, supported by valuable air service agreements with 97 countries and premium landing and takeoff slots at major global airports.

He noted that such assets are increasingly scarce in the global aviation industry and significantly enhance the airline’s intrinsic value.

Highlighting market fundamentals, the minister pointed to Pakistan’s growing population, expanding middle class, rising overseas travel, and increasing religious and tourism-related traffic as key demand drivers.

He said PIA is well placed to benefit from these trends, particularly given Pakistan’s geographic location linking South Asia with the Middle East, Europe, and North America.

Addressing operational challenges, the minister acknowledged issues such as fleet limitations and service constraints but stressed that these stem from governance failures rather than structural weaknesses.

With fresh capital, modern aircraft, and independent management, he said, PIA could rapidly restore suspended routes, improve reliability, and regain market share.

The minister said the government has deliberately structured the privatization transaction to unlock value for investors while protecting public interest.

Legacy debt has been transferred to a holding company, while most of the proceeds from the sale will be reinvested directly into the airline.

Non-core assets, including overseas hotels, have been excluded to ensure a clean and focused aviation business.

He added that employee interests have been safeguarded through a 12-month job security guarantee, while pension and post-retirement liabilities will remain with the government.

These measures, he said, remove key uncertainties for potential investors.

Calling the upcoming bid opening a defining moment, the minister said a successful privatization would not only revive PIA but also strengthen Pakistan’s credibility on economic reforms and state-owned enterprise restructuring. “PIA’s fundamentals are strong.

What it needs is professional execution,” he said, expressing confidence that private ownership would unlock the airline’s true potential and usher in a new phase of growth.

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