Pakistan to Sell National Carrier PIA for IMF Loans

In a pivotal move tied to bailout conditions from the International Monetary Fund (IMF), Pakistan has announced plans to sell its national airline, Pakistan International Airlines (PIA), through a public auction scheduled for December 23, 2025. The privatisation could transfer between 51% and 100% of PIA’s stake — including full management control — signaling a dramatic overhaul of the loss-ridden flag carrier.

A total of four groups have so far qualified to bid for the airline: Fauji Fertiliser Company Limited (linked to the military-associated Fauji Foundation), Lucky Cement Consortium, Arif Habib Corporation Consortium and Air Blue Limited. The inclusion of a military-backed firm among the bidders has stoked public debate about the role of such institutions in Pakistan’s privatisation drive.

The move comes amid mounting financial pressure on PIA, which has failed to remain profitable over recent years. Islamabad hopes the sale will clear the airline’s accumulated debts and relieve the government of operating liabilities that have burdened state finances. Under the proposed terms, the government also intends to offer incentives — such as debt relief and tax-related concessions on aircraft purchases — to make the acquisition more attractive for potential buyers.

Officials assert that the auction will be conducted transparently, with live-streamed bidding to ensure accountability and public trust. The sale is viewed as a crucial “structural condition” under the IMF programme — failure to finalise the deal may jeopardise future funding tranches, heightening the stakes for PIA’s fate.

With the December 23 auction date nearing, all eyes are on whether one of the bidders — especially the widely discussed Fauji-linked consortium — will take over the airline, and whether that transition can revive PIA’s standing in global aviation while stabilising Pakistan’s fragile economy.