Pakistan Prime Minister’s Adviser on Privatisation, Muhammad Ali, rejected criticism over the privatisation of state carrier Pakistan International Airlines (PIA) and said that the move does not undermine national pride but aims to restore the carrier’s lost strength and efficiency. Ali said that claims circulating on social media suggesting that the airline was sold for less than the value of its aircraft were incorrect and misleading, adding that such assertions do not reflect the facts of the privatisation process. Ali was addressing a joint press conference with Federal Information Minister Atta Tarar on Wednesday. The remarks came a day after a consortium led by Arif Habib Corporation emerged as the top bidder for a 75% stake in the national carrier by offering Rs 135 billion. The government would get 7.5% in cash and 25% in equity value.

“In total, the valuation of PIA is Rs 180 billion. So our structuring was such that we get Rs 10 billion in cash and the value of our equities is Rs 45 billion. So the government will get Rs 55 billion in total, and Rs 125 billion will flow back into PIA,” he said.

The deal was structured to inject fresh capital into the airline rather than just transfer ownership. “We did not want a situation where the government sells the airline, takes money, and the company still collapses,” Ali said.

He clarified that the impression that there were no liabilities in PIA was incorrect. “We are transferring Rs 180 billion in liabilities to the new buyer,” he said, adding that the government had removed the long-term debt otherwise, nobody would have come forward to buy the airline.

The PIA privatisation was a key test of Pakistan’s reform credibility with the IMF.

The government expects the new owner will be running the airline by April, subject to approvals, Ali told Reuters.

The process now moves to final approvals by the Privatisation Commission board and the cabinet, expected within days, with contract signing likely within two weeks and financial close after a 90-day period to meet regulatory and legal conditions.

Arif Habib and Lucky Cement consortia advanced to the open auction stage after placing offers above the reference price of Rs 100 billion, while private airliner Airblue exited after submitting Rs 26.5 billion offer.

The winning consortium also comprises fertiliser maker Fatima, private school network City Schools, and real estate firm Lake City Holdings Limited.

Ali said Fauji Fertiliser Company did not bid but could still join the winning consortium as a partner. The buyer can add up to two partners, including a consortium partner or a foreign airline, if they meet the qualifying criteria. Fauji Fertliser was initially in the race but opted out later.

Ali said the process for the “strategic sale” of PIA was initiated 20 years ago, and an attempt to sell it had been made last year also but was not successful.

He recalled that 50 years ago, PIA was operating around 50 aircraft, and the number should have increased to 100-115 by now, but it was operating just 18 planes.

Ali also pointed out that from 2015 to 2024, the airline incurred losses of Rs 500 billion over a period of 10 years.