PIA’s Flight Resumption Marks Key Step Toward Privatization

Karachi: Pakistan International Airlines (PIA) has resumed direct flights to Western markets, a move hailed as a strategic milestone for national trade and a vital precursor to the airline’s privatization. Mian Zahid Hussain, President of the Pakistan Businessmen and Intellectuals Forum, underscored the significance of this development in a recent statement.

Mr. Hussain noted that PIA’s restoration of flights to France earlier this year and now the UK, marked by the inaugural Islamabad-Manchester flight on October 25, 2025, reflects the government’s successful compliance efforts. This follows the lifting of the European Union Aviation Safety Agency suspension in November 2024 and the UK Civil Aviation Authority ban in July 2025.

He emphasized the importance of the UK as Pakistan’s third-largest trading partner, with bilateral trade valued at approximately £4.7 billion. The resumption of direct services is viewed as crucial for boosting export-led growth, restoring air freight capacity, and recovering an estimated PKR 40 billion in annual revenue lost during the five-year ban.

Hussain pointed to the regulatory success as an opportunity to attract investor interest in a restructured, debt-reduced PIA. Through the Scheme of Arrangement, the government removed approximately PKR 660 billion in legacy debt, reducing annual finance costs from PKR 79 billion to PKR 10 billion, thus de-risking the privatization process.

He urged the government to adhere to the November 17, 2025, deadline for finalizing the airline’s privatization. Hussain called for the new owner to invest at least $500 million in fleet modernization and operational overhaul to ensure PIA’s competitiveness against major Middle Eastern carriers.

Highlighting the importance of a transparent sale of a 51% to 100% share and management control, Hussain stressed this step as critical for unlocking necessary capital and expertise. The business community sees this as a test of the government’s economic reform agenda, aiming to propel PIA beyond its chronic liabilities towards commercial prosperity.

Source: Pakistan Businessmen and Intellectuals Forum