The Privatization Commission and Cabinet have approved the sale of Pakistan International Airlines (PIA), ending the carrier’s long-standing burden on the state.
Pakistani media report that a private company bought a 75 percent stake for PKR 135 billion. Of that sum, PKR 10 billion will be paid in cash to the government; the remainder is to be invested by the purchaser in new aircraft and service improvements.
PIA had long been loss-making, carried substantial debt, and faced serious internal operational problems.
The move to privatize the airline was mainly driven by pressure from the International Monetary Fund (IMF), which has forced Pakistan to divest loss-making state-owned enterprises.
