2 weeks Ago
The saga of Pakistan International Airlines’ (PIA) privatisation has dragged on for far too long. Once a source of national pride and profit, the airline has devolved into a burden on the national exchequer. Unwinding it from the government’s budget has been a central goal of this administration’s privatisation drive, a key part of its broader strategy to reduce debt and liabilities while shifting focus to revenue generation.
Yet, repeated efforts to sell off PIA have faltered. Part of the problem lies in the airline’s fundamentally unviable structure. Years of bloated hiring practices, political interference, and systemic mismanagement have rendered it unattractive to serious investors.
But the delays also stem from a deeper miscalculation: the government’s unrealistic expectation of extracting significant revenue from the sale. As the Privatisation Ministry acknowledged on Wednesday while seeking fresh bids, the priority must be to reduce losses—not to chase windfalls. Labour colonies’ issues to be resolved soon: PA speaker In this second round, the government must reset its expectations and widen the net.
That means reaching out to a broader pool of potential buyers, even if they are less conventional. The objective now should be clear: to offload PIA at a reasonable cost, even if that means accepting lower bids. Holding out for a higher price only prolongs the fiscal damage.
If successful, privatisation not only ends the financial haemorrhage but also outsources the painful reforms to private management. This shields the government from direct blame and allows it to refocus on governance rather than firefighting. One can only hope that this second round yields better results—and that the long-drawn-out burden of PIA is finally lifted from the government’s shoulders.
Tags: pia realities.
