PIA privatization reflects govt’s resolve to overhaul aviation sector: DG CAA

Pakistan Civil Aviation Authority (PCAA) Director General Nadir Shafi Dar said on Tuesday that the successful privatization of Pakistan International Airlines (PIA) was a clear demonstration of the government’s determination to transform the country’s aviation sector.

In a statement, Dar credited Defense Minister Khawaja Asif and Defense Minister Lt. Gen. Muhammad Ali for providing critical support that allowed the PCAA to make key reforms, leading to the lifting of air restrictions imposed by the European Commission and the United Kingdom.

He said the removal of these restrictions was instrumental in the success of the privatization process, significantly boosting investor confidence and pushing PIA’s bid value from Rs 10 billion in 2024 to Rs 135 billion in the last auction.

DG CAA noted that PIA’s successful bid will help boost the growth of Pakistani airlines and pave the way for opening new global destinations with direct connectivity from Pakistan.

He further said that the International Civil Aviation Organization (ICAO) has expressed full confidence in the supervisory and regulatory capabilities of the Civil Aviation Authority of Pakistan, terming it as a key supporter of the reforms undertaken in recent years.

The consortium led by Arif Habib Corporation Limited acquired the majority stake in PIA with the highest bid of Rs 135 billion in an auction held for the national carrier’s privatization process.

During the open bidding round, Arif Habib raised his bid from Rs115 billion to Rs135 billion after the Lucky Cement Limited-led consortium raised its earlier bid of Rs101.5 billion to Rs134 billion in the second round of open bidding.

Arif Habib, the head of Arif Habib Group, called the development a “triumph for Pakistan”.

He claimed that privatization of PIA will help boost investment in the country, adding that it will also attract foreign investment to Pakistan.

The businessman commended the government for the successful conduct of the bidding process, saying the Privatization Commission completed the entire process in a transparent manner. “We will work hard to make this airline great again,” he added.