ISLAMABAD: The government expects to conclude the privatisation of Pakistan International Airlines (PIA) by December, the  Senate Standing Committee on Privatisation, chaired by Senator Afnanullah, was informed on Thursday. 

Officials from the Privatisation Commission informed the committee that the process for Pakistan International Airlines’ (PIA) privatisation is in progress and expected to be completed by December this year.

The commission’s representatives said that the site due diligence process is nearing completion. They added that the privatisation will be finalised within the set timeline as per the government’s plan.

According to the briefing, four consortia are currently participating in the process, reviewing PIA’s accounts, aircraft, and flight routes.

The committee was assured that all necessary steps are being taken to ensure transparency and the timely completion of the privatisation process.

The remarks come as Islamabad presses ahead with a fresh attempt to privatise the national flag carrier, a key condition under Pakistan’s $7bn International Monetary Fund (IMF) bailout.

The government’s earlier bid to privatise the entity failed as a $36 million bid from real estate firm fell short of the $305m floor price, with concerns over debt, staffing, and limited control.

This time, the government is offering full divestment, has scrapped the sales tax on leased aircraft, and is providing limited protection from legal and tax claims. Around 80% of the airline’s debt has been transferred to the state.

“We’re targeting Rs86bn in privatisation proceeds this year,” Privatisation Minister Muhammad Ali told Reuters. “For PIA, in the last round of bidding, 15% of the proceeds were going to the government, with the rest staying within the company.”

Meanwhile, renewed efforts have attracted interest from local business groups — including Airblue, Lucky Cement, Arif Habib Group, and Fauji Fertiliser — with final bids expected later this year.

The PIA resumed flights to the United Kingdom, more than five years after a ban over a fake pilot licence scandal was lifted in July. Its European flights were resumed in January after a four-year ban.