Sialkot, November 30, 2024 – Aviation Minister Khawaja Asif welcomed the European Commission and the European Aviation Safety Agency’s (EASA) decision to lift the suspension on Pakistan International Airlines (PIA), expressing optimism about its positive impact on the privatization process of the indebted national carrier.
Speaking to media in Sialkot, Asif stated, “The second attempt for PIA’s privatization, set to take place soon, will benefit significantly from this development. It will add substantial value to our transaction.”
This development comes as EASA officially lifted its four-year-long ban on PIA, allowing the airline to resume its operations to Paris, France. The suspension was initially imposed following concerns about the airline’s safety standards. The decision marks a year since EASA and the European Commission conducted a thorough inspection visit to Pakistan.
Privatization Efforts to Restart
PIA’s privatization remains a critical aspect of Pakistan’s economic reforms under its ongoing 37-month, $7-billion IMF bailout program. The government had initially offered a 51% to 100% stake in the loss-making airline but received only one bid from Blue World Consortium, offering Rs. 10 billion for a 60% stake—far below the Privatization Commission’s minimum price of Rs. 85 billion.
The bid was rejected, prompting the government to plan a second privatization attempt. Minister Asif believes the lifting of the EASA ban will significantly enhance PIA’s market value and attract more competitive bids.
Recognition for Past Efforts
Asif praised the groundwork laid by Saad Rafique during his tenure as Aviation Minister under the PDM government. “The foundation for all these efforts was laid by Saad Rafique. We have reached this milestone because of his contributions,” he said.
Aviation Market Outlook
Highlighting the challenges ahead, Asif noted that PIA holds only a 30% share of Pakistan’s aviation market, with the remaining 70% dominated by foreign airlines. However, he expressed confidence that the lifting of the EASA ban would enable PIA to regain a foothold in European markets and attract more international traffic.
The minister commended the efforts of the government and aviation officials in achieving this breakthrough, calling it a pivotal moment for PIA’s revival.
