PIA privatization enters the final stage, says Aurangzeb

Finance Minister Muhammad Aurangzeb has announced that the privatization of Pakistani International Airlines has entered its final phase, while the government is also actively considering the external assignment of Islamabad’s international airport and the privatization of energy distribution companies.

Aurangzeb made observations during a meeting on Tuesday with a delegation led by the founder and chief executive of Acumen Jacqueline Novogratz. The meeting focused on investment opportunities, climate durability and ongoing economic reforms in Pakistan.

In a formal statement, the Ministry of Finance stated that the minister informed the delegation on the government’s agenda and the efforts to stabilize the economy, while stressing the use of artificial intelligence (AI), data analyzes and digital completion to expand the expansion of Sustainable development.

Aurangzeb said Pakistan aims to increase the ratio of tax to 11 %, while seeking to increase exports to boost the economy. He made progress in Pakistan-China’s economic cooperation, revealing that 24 new joint projects have been finalized in the context of the bilateral framework.

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Discussing the government’s digital unit, the finance minister said that all government payments would be completely digitized by the end of the next year. He also confirmed that Pakistan plans to issue his first Panda bond by the end of the year, while the recent $ 500 million Eurobond payment was completed without the issue.

The finance minister acknowledged that Pakistan is still facing two major challenges – climate change and population growth – but said the government is committed to conveying reforms that promote resilience and integration.

Novogratz benefited from Pakistan’s efforts to promote agriculture and transformation of poverty, describing the country’s development experience as “truly remarkable”.

The Treasury noted that Acumen currently has a $ 90 million resilient fund in Pakistan to support sustainable initiatives to adapt agriculture and climate.

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The government’s renewed attempt to privatize PIA follows a failed bid last year, when only one bid – 10 billion Rs ($ 36 million) from Blue World City real estate programmer – received for a 60 %share. The offer, well below the price of government flooring of $ 85 billion ($ 305 million), was rejected.

The Privatization Committee re -opened the process in April 2025, inviting expressions of interest for 51 to 100 % share of both domestic and international investors.

The renewed process attracted interest from eight entities, with four – including top business groups and a private teacher – selected after federal approval in July. The final offer and negotiations are expected in the fourth quarter of 2025.

PIA’s sale is expected to mark Pakistan’s first significant privatization in almost two decades. The rejuvenation of losses belonging to losses, such as the PIA, remains a key reference point in the continued international $ 7 billion funding program in the country.