PPP rejects PIA’s privatisation

ISLAMABAD: Pakistan People’s Party (PPP) leader and In-charge of the party’s Labour Bureau, Chaudhry Manzoor Ahmed, has rejected the privatization of Pakistan International Airlines (PIA), claiming that national assets are being sold at “throwaway prices” and alleging that a “robbery” of Rs10 billion is being committed under the garb of privatization. Addressing a news conference along with the People’s Unity of PIA (CBA) at Islamabad Press Club on Wednesday, he released a detailed white paper describing the privatization process as “the biggest economic scam in Pakistan’s history, ” arguing that the government narrative has been contradicted by verified financial and legal data. Chaudhry Manzoor Ahmed strongly criticized the privatization of Pakistan International Airlines (PIA), calling it a “non-transparent sale of national assets” and demanding an independent judicial inquiry. According to the white paper, PIA generated Rs26 billion net profit in 2024 and Rs17. 3 billion in operating cash flow, yet is being sold for only Rs10 billion. It also claims that the airline’s total assets stand at Rs187. 288 billion, while only the privatization value is set at Rs10 billion. The document further states that 11 real estate properties owned by PIA are valued at Rs33 billion, more than three times the proposed sale price. It also highlights that a single landing slot at London’s Heathrow Airport can generate up to Rs10 billion annually, equal to the entire sale value of the airline. The white paper notes that PIA holds over 170 international slots and more than 30 profitable international routes. It also compares the sale price with recent government transactions, stating that a small aircraft was purchased by Punjab for Rs 10 billion, the same amount for which 18 operational aircraft, seven hangars, and a global network of routes were transferred. Chaudhry Manzoor alleged that the privatization violates Article 154 of the Constitution, as approval was not taken from the Council of Common Interests (CCI). He further claimed that after the expiry of the PIACL Conversion Act 2016 on June 30, 2025, the restructuring process has no legal standing, making the current transaction unlawful. He also accused the government of bypassing Parliament and transferring shares illegally. The white paper warned that privatization could lead to private monopolies and sharp increases in airfares, particularly affecting remote regions such as Skardu, Gilgit, and Gwadar, where PIA currently serves as the only operational lifeline. It further claimed that under the “Open Skies” policy, foreign airlines were favoured, deliberately weakening PIA to facilitate its sale at a low price. Chaudhry Manzoor demanded that instead of full privatization, 20 to 30 percent of shares should be offered through an Initial Public Offering (IPO) to ensure transparency and retain national control. He also called for an independent international valuation of PIA’s assets and reforms in management instead of privatization. He reiterated that the findings prove this is not privatization but a “sale of national assets, ” warning that the PPP Labour Bureau and workers’ organizations would resist the process at all levels and expose those responsible for what he termed the “distress sale” of the national airline. He alleged that PIA was sold for around Rs135 billion while the government received only Rs10 billion, adding that Rs6 billion was paid to consultants involved in the process. He termed the entire privatization exercise “opaque and questionable. ” Chaudhry Manzoor also claimed that the airline holds significant assets, including property worth over Rs3, 000 billion, offices, furniture, and a fleet of around 400 vehicles. Copyright Business Recorder, 2026

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