The Pakistan International Airlines (PIA) reportedly incurred cumulative losses of approximately Rs. 500 billion between 2015 and 2023, officials informed the Senate Standing Committee on Privatization on Monday.
Privatization Secretary Usman Bajwa explained that the government’s decision to privatize the national carrier was driven by the airline’s persistent financial struggles, with annual losses averaging nearly Rs. 100 billion.
Officials highlighted that weak management has been a major factor preventing PIA from achieving profitability, despite its longstanding status as Pakistan’s flagship airline.
The briefing also revealed that PIA’s net worth had dropped to just Rs. 9 billion in recent years. However, after an asset revaluation, the airline’s estimated value increased to approximately Rs. 41 billion, laying the groundwork for the ongoing privatization process.
The government’s move to privatize PIA comes amid growing concerns about the airline’s sustainability and its burden on public finances. Authorities are emphasizing that privatization could introduce stronger management practices, operational efficiency, and financial stability to the struggling carrier.
