PIA Revival: A Regulatory Triumph Must Pave the Way for

Mian Zahid Hussain, President Pakistan Businessmen and Intellectuals Forum & All Karachi Industrial Alliance, Chairman National Business Group Pakistan, Chairman Policy Advisory Board FPCCI, and Former Provincial Minister Information Technology, today applauded the successful resumption of Pakistan International Airlines direct flights to Western markets, calling it a strategic milestone for national trade and a critical prelude to the airline’s privatization.

Mr. Hussain emphasized that the restoration of PIA flights to France in January 2025 and now to the UK—culminating in the inaugural Islamabad-Manchester flight on October 25, 2025—validates the rigorous compliance efforts undertaken by the government. This success follows the successful lifting of the European Union Aviation Safety Agency (EASA) suspension in November 2024 and the UK Civil Aviation Authority (CAA) ban in July 2025.

“The successful resumption of direct services to destinations like the UK, Pakistan’s third-largest trading partner with bilateral trade valued at approximately £4.7 billion, is a pivotal moment for our export-led growth,” stated Mr. Hussain. “It signifies our renewed adherence to international safety standards, restoring critical air freight capacity and recovering the estimated PKR 40 billion in annual revenue that was lost during the five-year ban.”

Mian Zahid Hussain stressed that the regulatory success has created the perfect opportunity to maximize investor interest in the debt-lite entity. He highlighted the extraordinary financial restructuring achieved through the Scheme of Arrangement (SoA), where the government carved out approximately PKR 660 billion in legacy debt from the core operating entity. This drastic action reduced PIACL’s annual finance costs from PKR 79 billion to a sustainable PKR 10 billion, effectively de-risking the privatization transaction for potential investors.
“The hard work of cleansing the balance sheet is done. The path forward is now clear, and there must be no further delay,” Mr. Hussain asserted. He urged the government to strictly adhere to the reported extended deadline of November 17, 2025, for finalizing the privatization.

“To compete effectively against the entrenched Middle Eastern carriers (ME3), the new incoming owner must be mandated to commit at least $500 million in capital expenditure for immediate fleet modernization and operational overhaul,” he demanded. “Without this injection, PIA will remain competitively disadvantaged. The value lies not just in the balance sheet, but in securing a commitment to future-proofing the national carrier.”

Mr. Hussain concluded that the transparent sale of a 51% to 100% share and management control is the only viable path to unlock the necessary capital and expertise required for long-term, sustainable growth. The business community views this divestment as a critical test of the government’s broader economic reform agenda, ensuring the national flag carrier can finally move beyond chronic liabilities and achieve commercial prosperity.