ISLAMABAD: The Islamabad High Court (IHC) has issued notices to the federal government and other respondents, seeking their reports within two weeks on a petition challenging the privatization process of Pakistan International Airlines (PIA).
The petition, filed by Peoples Unity, challenges the outcome of PIA bidding held last year, which named the Arif Habib Consortium as a successful bidder for acquiring a major stake in airline.
The legal challenge disputes the formal approvals granted by the Cabinet Committee on Privatization (CCoP) and the federal cabinet.
Justice Arbab Muhammad Tahir issued the written order during the hearing, while also accepting a miscellaneous application to bring formal written arguments on record. The court has subsequently adjourned further proceedings until the last week of October 2026.
The petitioner’s counsel argued that several legal mandates were overlooked, including the statutory expiration of the PIA Corporation Conversion Act, 2016, and the lack of mandatory clearances from Council of Common Interests (CCI), raising serious transparency and procedural concerns over the sell-off.
The broader privatization drive of PIA has been a cornerstone of the government’s structural reform agenda, heavily pushed to curtail continuous fiscal leakages from state-owned enterprises that heavily burden the national exchequer.
Over past many years, governments have restructured the national flag carrier by dividing its core operations and liabilities to make the privatization deal attractive for private investors and global consortiums.
The privatization of the airline has faced severe resistance from labor unions, employee associations, and legal experts who have questioned asset valuations, transparency, and procedural adherence.
