Pakistan to broadcast auction of loss-making national airline

The logo of Pakistan International Airlines (PIA) is seen in Islamabad, Pakistan, April 12, 2016. (REUTERS)
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Updated 22 December 2025
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Pakistan to broadcast auction of loss-making national airline

  • This is Pakistan’s third attempt at PIA privatization, following a failed 2024 auction that got only one bid
  • Islamabad plans to retain PIA name and branding, expand fleet and route network under the new business plan

ISLAMABAD: Pakistan is set to broadcast live the auction of its loss-making national airline tomorrow, Pakistani state media reported on Monday, a move authorities say is aimed at ensuring transparency.

Pakistan will privatize 75 percent of the carrier, the Pakistan International Airlines (PIA), while retaining its name and branding, according to Prime Minister Shehbaz Sharif’s Office.

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.

Pakistan prequalified in July four consortiums for the sale, but Fauji Fertilizer Company Ltd. withdrew later. Lucky Cement and Arif Habib Corporation lead two other consortiums, while private airline Airblue is the third contender.

“The government plans a full divestment of the airline, beginning with the auction of a 75 percent stake on Tuesday, with the remaining 25 percent to be offered later at a 12 percent premium,” Pakistan TV Digital reported quoted Privatization Commission Chairman Muhammad Ali as saying.

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, United Kingdom and the United States (US) after a pilot licensing scandal. Privatizing the airline is also a key requirement under Pakistan’s $7 billion International Monetary Fund (IMF) program agreed last year.

This is Pakistan’s third attempt at PIA privatization, following a failed 2024 auction that received only one bid of $35 million that was far below the government’s nearly $300 million asking price, according to Privatization Commission records.

The government is targeting $302 million in privatization proceeds this year, though Ali said restoring PIA operations remains a priority over maximizing short-term revenue. Islamabad plans to expand PIA fleet and route network under the new business plan.

Ali last month said the government had aimed to finalize the airline’s sale by October 2025 but the target was missed due to delays in restructuring and valuation.

The PIA sale is seen as a key test of Pakistan’s broader economic reform agenda as the government seeks to cut losses from state-owned enterprises and revive investor confidence.

Islamabad has launched a five-year privatization plan covering 24 state entities between 2024 and 2029, including the Roosevelt Hotel in New York, three banks, power distribution companies, and the Postal Life Insurance Company, according to the Privatization Commission.


Tens of thousands flee northwest Pakistan over fears of military operation

Updated 28 January 2026
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Tens of thousands flee northwest Pakistan over fears of military operation

  • More than 70,000 people, mostly women and children, have fled remote Tirah region bordering Afghanistan 
  • Government says no military operation underway or planned in Tirah, a town in Khyber Pakhtunkhwa province

BARA, Pakistan: More than 70,000 people, mostly women and children, have fled a remote region in northwestern Pakistan bordering Afghanistan over uncertainty of a military operation against the Pakistani Taliban, residents and officials said Tuesday.

Pakistan’s Defense Minister Khawaja Mohammad Asif has denied the claim by residents and provincial authorities. He said no military operation was underway or planned in Tirah, a town in Khyber Pakhtunkhwa province.

Speaking at a news conference in Islamabad, he said harsh weather, rather than military action, was driving the migration. His comments came weeks after residents started fleeing Tirah over fears of a possible army operation.

The exodus began a month after mosque loudspeakers urged residents to leave Tirah by Jan. 23 to avoid potential fighting. Last August, Pakistan launched a military operation against Pakistani Taliban in the Bajau r district in the northwest, displacing hundreds of thousands of people.

Shafi Jan, a spokesman for the provincial government in Khyber Pakhtunkhwa, posted on X that he held the federal government responsible for the ordeal of the displaced people, saying authorities in Islamabad were retracting their earlier position about the military operation.

Khyber Pakhtunkhwa Chief Minister Suhail Afridi, whose party is led by imprisoned former Prime Minister Imran Khan, has criticized the military and said his government will not allow troops to launch a full-scale operation in Tirah.

The military says it will continue intelligence-based operations against Pakistani Taliban, who are known as Tehrik-e-Taliban Pakistan, or TTP. Though a separate group, it has been emboldened since the Afghan

Taliban returned to power in 2021. Authorities say many TTP leaders and fighters have found sanctuary in Afghanistan and that hundreds of them have crossed into Tirah, often using residents as human shields when militant hideouts are raided.

Caught in the middle are the residents of Tirah, who continued arriving in Bara.

So far, local authorities have registered roughly 10,000 families — about 70,000 people — from Tirah, which has a population of around 150,000, said Talha Rafiq Alam, a local government administrator overseeing the relief effort. He said the registration deadline, originally set for Jan. 23, has been extended to Feb. 5.

He said the displaced would be able to return once the law-and-order situation improves.

Among those arriving in Bara and nearby towns was 35-year-old Zar Badshah, who said he left with his wife and four children after the authorities ordered an evacuation. He said mortar shells had exploded in villages in recent weeks, killing a woman and wounding four children in his village. “Community elders told us to leave. They instructed us to evacuate to safer places,” he said.

At a government school in Bara, hundreds of displaced lined up outside registration centers, waiting to be enrolled to receive government assistance. Many complained the process was slow.

Narendra Singh, 27, said members of the minority Sikh community also fled Tirah after food shortages worsened, exacerbated by heavy snowfall and uncertain security.

“There was a severe shortage of food items in Tirah, and that forced us to leave,” he said.

Tirah gained national attention in September, after an explosion at a compound allegedly used to store bomb-making materials killed at least 24 people. Authorities said most of the dead were militants linked to the TTP, though local leaders disputed that account, saying civilians, including women and children, were among the dead.