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a union led by Pakistani Investment firm acquires 75% stake in state-run Pakistan International Airlines During a televised auction on Tuesday, a major step forward was taken in the government’s long-delayed effort to privatize the loss-making national carrier.
Arif Habib Consortium submits winning bid of 135 billion rupees ($482 million) for majority stake drankOnce considered one of the top airlines in the region, it has suffered decades of financial losses and mismanagement.
Finance Minister Muhammad Aurangzeb, speaking at the bidding ceremony, said the privatization process was transparent and competitive. He expressed hope that the new owners would help revive the airline.
This sale fulfills a long-standing demand International Monetary Fundwhich has repeatedly urged Pakistan to privatize the airline as part of broader economic reforms linked to its bailout programs.
The auction came two months after PIA resumed direct flights to Europe following the European Union Aviation Safety Agency’s decision to lift a four-year ban imposed over safety concerns. The ban was imposed in 2020, after 97 people were killed when a PIA plane crashed karachi,
PIA, once seen as a model airline, has deteriorated over the years due to political interference and overstaffing. The airline employs approximately 300 staff per aircraft across its fleet of 32 – one of the highest employee-to-aircraft ratios in the industry. Most airlines operate with less than 200 employees per aircraft, which is a common standard of productivity.