Pakistan privatized its national airlines, PIA, on Tuesday, with a consortium, Arif Habib, staking 75% ownership with $482 million of the company, once considered one of the leading world airlines and symbol of national pride.
The Arif Habib investment group has an option to purchase the remaining 25 percent of Pakistan International Airlines in the next few months.
The privatization of PIA marks a major step for Islamabad which wants to offload large corporations as part of efforts to streamline the national economy.
Prime Minister Shehbaz Sharif hailed the transparent bidding for sale of the airlines, calling it the “biggest transaction of Pakistan’s history.”
Islamabad’s privatization drive has been endorsed by the International Monetary Fund as large heavily overstaffed corporations are seen as weighing heavily on the country’s balance of payment system.
Soon after its interception in the 1950, PIA shot to prominence as one of the top modern airlines, winning international awards for its efficient services including hospitality.
However, careless overstaffing under successive governments pushed PIA to the brink of financial trouble.
The federal government paid tens of billions of rupees every year to bail out the airlines.
Kiran Asim is a writer who covers the U.S., Europe, South Asia, and the Middle East. Her reports and analyses look at the geostrategic issues and contemporary developments and their economic and political implications. She also writes about society and education.
