Pakistan sets Dec. 23 for PIA privatization bidding, to be broadcast live — PM

Passengers board a Pakistan International Airlines (PIA) flight, the first commercial international flight since the Taliban retook power last month, at the airport in Kabul on September 13, 2021. (AFP/ file)
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Updated 03 December 2025
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Pakistan sets Dec. 23 for PIA privatization bidding, to be broadcast live — PM

  • PIA’s sale is key to cutting losses, meeting IMF structural reform targets
  • Airline has suffered years of financial strain, failed privatization attempts

ISLAMABAD: Pakistan will hold the bidding for the privatization of Pakistan International Airlines (PIA) on Dec. 23, with the entire process to be broadcast live nationwide to ensure transparency, Prime Minister Muhammad Shehbaz Sharif said on Wednesday. 

The decision marks Islamabad’s most aggressive push in decades to reform the debt-ridden airline, which has accumulated more than $2.5 billion in losses and become a major burden on the national budget. Once regarded as one of Asia’s premier carriers, PIA has struggled with chronic mismanagement, political interference, overstaffing, mounting debt and operational issues that led to a 2020 ban on flights to the European Union and United Kingdom after a pilot licensing scandal. Privatizing the airline is also a key requirement under Pakistan’s $7 billion International Monetary Fund (IMF) program agreed in September 2024.

Last month, Sharif said Pakistan will privatize 75 percent of the national carrier, with bidding to take place among four shortlisted investor groups. 

“PIA’s bidding will take place on 23 December 2025 and will be broadcast live on all media,” Sharif was quoted as saying in a statement released by his office. 

He said the government was ensuring “transparency and merit” throughout the privatization process and added that resuming the airline’s global flight operations would ease travel for overseas Pakistanis and support the tourism sector.

“The privatization process is proceeding smoothly to restore PIA’s lost identity and to align the national airline with modern requirements,” he said.

“God willing, very soon PIA will once again live up to its tradition of being ‘Great People to Fly With,’” referring to the airline’s tagline. 

Successive governments have attempted to privatize PIA to restore financial stability, but political resistance, labor pushback and weak investor appetite previously stalled the process. Officials now say the sale is critical to reviving the national carrier’s operations, restoring international routes and easing pressure on public finances. 

A deal to sell the airline late last year fell through after a potential buyer reportedly offered just $36 million for a 60 percent stake, far below the asking price of roughly $303 million.

In July, Pakistan prequalified four investor groups for the sale: A consortium of major industrial companies, Lucky Cement, Hub Power Holdings, Kohat Cement and Metro Ventures; a consortium led by Arif Habib Corporation with Fatima Fertilizer, The City School and Lake City Holdings; Fauji Fertilizer Company, part of a military-backed conglomerate; and Airblue, a private Pakistani airline.

In November, Pakistan’s privatization chief Muhammad Ali had said the government aimed to finalize the airline’s sale by October, but the target was missed due to delays in restructuring and valuation.
 


Cross-border clash breaks out between Pakistan and Afghanistan amid rising tensions

Updated 55 min 2 sec ago
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Cross-border clash breaks out between Pakistan and Afghanistan amid rising tensions

  • Border residents say exchange of fire in the Chaman border sector lasted nearly two hours
  • Both governments issue competing statements blaming the other for initiating the violence

ISLAMABAD: Pakistan and Afghanistan witnessed yet another border clash, according to officials in both countries who spoke in the early hours of Saturday, with each side accusing the other of launching “unprovoked” attacks.

Fighting erupted in Pakistan’s southwestern Chaman border sector, with an AFP report saying that residents on the Afghan side of the frontier reported the exchange of fire began at around 10:30 p.m. (1800 GMT) and continued for roughly two hours.

The incident underscored how tensions remain high between the neighbors, who have seen deadly clashes in recent months despite several rounds of negotiations mediated by Qatar and Türkiye that resulted in a tenuous truce in October.

“There has been unprovoked firing by Afghan Taliban elements in the Chaman Sector which is a reckless act that undermines border stability and regional peace,” said a Pakistani security official on condition of anonymity.

“Pakistani troops responded with precision, reinforcing that any violation of our territorial integrity will be met with immediate and decisive action,” he continued.

The official described Pakistan’s response as “proportionate and calibrated” that showed “professionalism even in the face of aggression.”

“The Chaman Sector exchange once again highlights the need for Kabul to rein in undisciplined border elements whose actions are destabilizing Afghanistan’s own international standing,” he added.

Relations between Pakistan and Afghanistan have grown increasingly bitter since the Taliban seized power in Kabul following the withdrawal of international forces in August 2021.

Islamabad accuses the Taliban administration of sheltering anti-Pakistan militant groups such as the Baloch Liberation Army (BLA) and Tehreek-e-Taliban Pakistan (TTP), which have carried out deadly attacks in its western provinces bordering Afghanistan, targeting civilians and security forces.

The Taliban deny the charge, saying Pakistan’s internal security challenges are its own responsibility.

The Pakistani security official said his country remained “committed to peaceful coexistence, but peace cannot be one-sided.”

“Attempts to pressure Pakistan through kinetic adventurism have repeatedly failed and will continue to fail,” he said. “The Chaman response has reaffirmed that message unmistakably.”

He added that Pakistan’s security forces were fully vigilant and that responsibility for any escalation “would solely rest with those who initiated unprovoked fire.”

Mosharraf Zaidi, spokesman for Pakistan’s prime minister, also commented on the clashes in a social media post, saying the Afghan Taliban had “resorted to unprovoked firing along the border.”

“An immediate, befitting and intense response has been given by our armed forces,” he wrote.

Afghan authorities, however, blamed Pakistan for the hostilities.

“Unfortunately, tonight, the Pakistani side started attacking Afghanistan in Kandahar, Spin Boldak district, and the forces of the Islamic Emirate were forced to respond,” Taliban spokesman Zabihullah Mujahid said on X.

Border clashes that began in October have killed dozens of people on both sides.

The latest incident comes amid reports of back-channel discussions between the two governments, although neither has publicly acknowledged such talks.