PIA plans IPO, new destinations within a year under new ownership
Dhaka: Pakistan International Airlines (PIA) is set to go public within a year of its takeover, according to media reports published recently. The reports, citing Aqeel Karim Dhedhi, said the airline plans to list 5%-10% of its shares as part of a broader strategy to regain market share.
Dhedhi, chairman of AKD Group, which holds an 11% stake in the consortium that acquired 75% of PIA for PKR 135 billion, said in addition to going for the IPO, the airline aims to restore direct flights to major global destinations.
“There are no direct flights from Pakistan currently, and passengers rely on transit connections via Qatar, Abu Dhabi, Saudi Arabia, and Turkey,” he said. “We intend to take our business back. Travelers will prefer direct flights over transits whenever possible.”
The privatization marks Pakistan’s largest sale of a state-owned enterprise in recent years, as the government seeks to reduce losses from financially strained entities.
Arif Habib, the consortium leader, outlined plans to have PIA’s entire fleet of 34 aircraft fully serviceable by September 2026. He noted decades of mounting debts and loan guarantees strained the airline’s finances, creating a cycle of increasing liabilities.
Under the new ownership structure, the government retains a 25% stake, while the private consortium holds 75% operational control, giving it authority to manage day-to-day operations and implement turnaround strategies.
The IPO is expected to provide fresh capital to support fleet modernization, route expansion, and service improvements, signaling a new chapter for the national flag carrier.
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