Government says eight entities interested in Pakistan’s debt-ridden airlines amid privatization drive

View of a Pakistan International Airlines (PIA) passengers plane, taken through a glass panel, at the Allama Iqbal International Airpor in Lahore, Pakistan on January 29, 2024. (REUTERS/File)
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Updated 17 May 2024
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Government says eight entities interested in Pakistan’s debt-ridden airlines amid privatization drive

  • The deadline for submitting expressions of interest to participate in PIA’s divestment ended at 4 PM on Friday
  • The Privatization Commission is now carrying out the pre-qualification process in line with the laid-out criteria

KARACHI: The Ministry of Privatization on Friday named eight business entities that have expressed interest in acquiring stakes in the state-owned Pakistan International Airlines (PIA) that has faced significant financial difficulties and repeatedly urged the government for bailouts in recent years.

Pakistan agreed to overhaul its public sector entities under a $3 billion short-term loan package it signed with the International Monetary Fund (IMF) last year to avert a sovereign debt default.

The IMF recommended the government privatize the state-owned enterprises (SOEs) whose losses were burning a hole in the country’s finances amid its already precarious economic situation.

According to the ministry, the deadline for submitting expressions of interest to participate in PIA’s divestment process ended at 4 PM today.

“In response to the Invitation of Expression of Interest (EoI), for Divestment of Pakistan International Airlines Corporation Limited (PIACL), published advertisement in leading national and international newspapers on 2nd & 3rd April, 2024, Privatization Commission has received Statement of Qualifications from (1) Fly Jinnah, (2) Air Blue Limited, (3) Arif Habib Corporation Limited, (4) Sardar Ashraf D. Baluch – SHANXI CIG Co. Ltd. (China), (5) Gerry’s International (Private) Limited, (6) Consortium Lead by Y.B. Holdings (Private) Limited, (7) Consortium Lead by Pak Ethanol and (8) Consortium Lead by Blue World City,” it announced.

“Privatization Commission will now carry out the pre-qualification process in line with the criteria laid down in the RSOQs [Requests for Statement of Qualification], under the PC Ordinance 2000 and rules & regulations framed thereunder,” it continued. “Accordingly, the pre-qualified parties will be invited for the next stage of bidding process.”

The privatization of SOEs is proving to be a challenging process. Prime Minister Shehbaz Sharif stated earlier this week his government would not sell public entities it deemed “strategically important.”

Prior to this, the newly appointed Deputy Prime Minister Ishaq Dar, while chairing a meeting of the Cabinet Committee on Privatization, affirmed the government would continue to retain essential or strategic SOEs.

Contrasting these views, Finance Minister Muhammad Aurangzeb, who is negotiating with the IMF for a fresh loan, declared that there was “no such thing as a strategic” public entity, indicating his intent to keep the privatization process comprehensive.


UN agencies report spike in Afghan arrests as nearly two million return from Pakistan

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UN agencies report spike in Afghan arrests as nearly two million return from Pakistan

  • UNHCR and IOM data show weekly spike in detentions, with Balochistan emerging as main hotspot
  • International rights groups say the deportation drive risks violating international protection obligations

ISLAMABAD: United Nations agencies for refugees and migration recorded a sharp rise in the arrest and detention of Afghan nationals in Pakistan since the beginning of the year, highlighting in a report this week that about two million Afghans have been repatriated to their country since late 2023.

According to a joint report released by the Office of the United Nations High Commissioner for Refugees (UNHCR) and the International Organization for Migration (IOM), the scale of the movement has gone up significantly.

“During the reporting period (4 – 10 January), a total of 1,726 Afghan nationals were arrested and detained, marking an 18 percent increase compared to the previous week,” the report said. “Cumulatively, from 15 September 2023 to 10 January 2026, 1,957,694 individuals have returned.”

The mass migration and deportation drive began on November 1, 2023, after Pakistani authorities announced a repatriation plan for “illegal immigrants,” mostly Afghans. The decision followed a spike in suicide bombings, which the Pakistani government said were carried out by Afghan nationals or by militants launching cross-border attacks from neighboring Afghanistan.
Islamabad has also blamed illegal Afghan immigrants and refugees for involvement in smuggling and other crimes, though Afghanistan denies the allegations.

In 2025, Pakistan expanded the scope of its deportation drive, moving beyond undocumented foreign nationals to include holders of Afghan Citizen Cards (ACC). The campaign was later extended to bearers of Proof of Registration (PoR) cards after their validity expired in June.

While PoR cards were meant to recognize Afghan refugees under a formal registration framework, ACCs were merely introduced to document Afghan nationality without conferring refugee status on those in possession of them.
“Out of all arrests and detentions during the reporting period ... ACC holders and undocumented Afghans represented 87 percent of the total rate of arrest and detentions, and PoR holders represented 13 percent,” the report said.

In addition to the arrests, the reporting period saw a marked increase in activity at the border. Between January 4 and January 10, 2026, alone, an estimated 19,666 Afghans returned through various crossing points including Torkham and Chaman, representing a 38 percent increase in returns and a 17 percent increase in deportations compared to the week prior.

The UN report noted that “fear of arrest remained the main reason for return among undocumented individuals and ACC holders (95 percent)” while PoR card holders cited “strict border entry requirements” as their primary driver for leaving.
Geographically, 73 percent of recent arrests occurred in Balochistan, with the Islamabad Capital Territory (ICT) also being a focal point with 16 percent of the total arrests following government directives for Afghans to relocate from the capital.

Earlier in January, Amnesty International renewed pressure on Islamabad, urging it to stop deportations.

“Amnesty International calls on the Pakistani authorities to halt the deportation of Afghan refugees and ensure that individuals with international protection needs are safeguarded as per international human rights law,” it said in an open letter addressed to Prime Minister Shehbaz Sharif.

Amnesty maintained Pakistan’s repatriation policy violated the principle of non-refoulement, which prohibits returning refugees to countries where they could face persecution or serious harm, and described the campaign as potentially “one of the largest forcible returns of refugees in modern history.”