ISLAMABAD: Pakistan International Airlines is poised for a significantrevival in its international operations, with direct flights to the UnitedStates likely to resume within the current year, according to officialbriefings. The Senate Standing Committee on Privatization received thisupdate on Friday, highlighting improved performance on existing routes tothe United Kingdom and Europe as a foundation for broader expansion. Thisdevelopment marks a turning point for the national carrier, long burdenedby financial losses and regulatory restrictions, following its recentprivatization.
The Secretary of the Privatization Commission informed the committee thatnegotiations are advancing to lift longstanding bans affecting US routes,describing the potential restoration as good news for passengers travelingto North America. Recent operational enhancements, including resumedservices to the UK and select European destinations, have demonstratedPIA’s capacity to meet international standards. These improvements stemfrom concerted efforts to address past issues, such as pilot licensingconcerns that led to bans by the US, UK, and EU authorities several yearsago.
Privatization has accelerated PIA’s turnaround trajectory. The federalgovernment finalized the sale of a 75 percent stake to a consortium led byArif Habib Corporation for Rs135 billion, with the transaction documentssigned recently. Of this amount, Rs125 billion is directed as investmentinto the airline for fleet expansion and operational upgrades, while thegovernment expects total proceeds of Rs55 billion. This structure endsdecades of heavy state subsidies, previously amounting to Rs50-60 billionannually in bailout packages to sustain the loss-making entity.
The shift to private management under the Arif Habib-led group promisesenhanced efficiency and service quality. Officials noted that theprivatization eliminates recurring fiscal burdens from politicalinterference and inefficiencies. With new capital inflows, PIA aims tomodernize its fleet, currently limited in active aircraft, and increaseroute frequencies. Talks with manufacturers like Boeing are underway toacquire additional planes, supporting ambitions to grow operationssubstantially in the coming years.
International route restoration forms a core part of this strategy. PIA hasalready resumed direct flights to the UK, including services to Manchesterand planned expansions to London from multiple Pakistani cities startingMarch 2026. These steps have rebuilt credibility with global regulators andaviation authorities. The committee was assured that similar progress isbeing made toward the US market, where direct connectivity would benefitthe large Pakistani diaspora and boost trade links between the two nations.
Financial relief for the exchequer is a key outcome of the privatization.By offloading majority control, the government ceases annual injectionsthat drained public resources. The Rs55 billion expected proceeds representa net gain, especially as Rs125 billion reinvests directly into PIA ratherthan subsidizing losses. This model aligns with broader economic reformsaimed at reducing state-owned enterprise burdens and fostering privatesector-led growth in critical sectors like aviation.
Read Top Stories
Challenges remain in fully realizing this potential. Past scandals erodedtrust, necessitating sustained compliance with international safety andoperational norms. The committee emphasized the need for transparency inemployee safeguards and long-term viability under new ownership. However,initial indicators suggest optimism, with the consortium committing toequity-based investments and professional management to restore PIA’scompetitive edge in global aviation.
The revival of US routes would symbolize PIA’s return to major long-hauldestinations after years of absence. It would ease travel for thousands ofpassengers who currently rely on indirect connections, reducing costs andtime. Industry observers view this as part of a broader resurgence forPakistan’s aviation sector, potentially attracting more foreign investmentand enhancing national connectivity.
Overall, the developments underscore a strategic pivot from statedependency to private efficiency. With privatization concluded andinternational expansions on track, PIA stands at a pivotal moment toreclaim its position as a reliable flag carrier.
ogimageimage-name
