Pakistan International Airlines

Prime Minister Shehbaz Sharif directed officials to complete the privatisation programme of state-owned enterprises within agreed timelines, emphasizing coordination among ministries. The meeting highlighted progress on privatising Pakistan International Airlines and First Women Bank, with upcoming deadlines for Islamabad, Faisalabad, and Gujranwala Electric Supply Companies. Shehbaz stressed maintaining Zarai Taraqiati Bank’s focus on agricultural financing post-privatisation.

Prime Minister Shehbaz Sharif directed the elimination of unnecessary government positions and institutions to enhance performance and efficiency. The initiative has already closed entities like the Utility Stores Corporation and Pakistan Public Works Department, resulting in cost savings. A third-party audit of abolished posts is mandated, and privatization efforts for state-owned enterprises such as Pakistan International Airlines are underway.

South Air launched inaugural flights from Karachi to Quetta via Turbat and Islamabad via Bahawalpur, enhancing Pakistan's domestic air connectivity. The airline plans to expand services to Peshawar, Rahim Yar Khan, Sukkur, and Gwadar, aiming to boost tourism, trade, and regional travel convenience.

Pakistan International Airlines (PIA) has resumed direct flights between Lahore and Manchester after a six-year hiatus, with the first flight carrying 325 passengers. The resumption follows the lifting of a 2020 EU and UK flight ban imposed on Pakistani airlines after a Karachi aircraft crash. PIA now operates five weekly flights between Pakistan and Manchester, including four from Islamabad and one from Lahore, and announced plans to restart direct flights to London.

PIA's management control has been transferred to a consortium including private investors and the Fauji Foundation, with a Rs10bn upfront payment and a commitment of Rs125bn for restructuring and improvements. The airline faces challenges such as financial losses, competition from Gulf carriers, and structural constraints despite privatisation.

Pakistan International Airlines (PIA) will be fully handed over to new owners by the end of the month after completing regulatory approvals. Privatisation plans include Islamabad Airport in FY2026-27 and outsourcing processes for Karachi and Lahore airports, alongside tax exemptions for PIA secured via IMF approval, which critics argue creates unfair advantages over other airlines.

President Asif Ali Zardari approved the repeal of the 2016 bill to privatize Pakistan International Airlines, fulfilling legal requirements. A consortium led by Arif Habib Corporation Limited secured 75% shares of PIA in December 2025 with a Rs135 billion bid and aims to acquire the remaining 25% government stake.

Pakistan plans to transfer control of its airline to a new buyer by April. The airline in question is Pakistan International Airlines.