The privatization of Pakistan International Airlines (PIA) is nearing its final stages with four major companies participating in the bidding process, though the government has firmly stated that no foreign entity will be permitted to acquire a majority stake, the Senate Standing Committee on Defence was informed on Friday.
During a high-level meeting chaired by Senator Muhammad Talha Mahmood, the Secretary Defence disclosed that Arif Habib Limited, Fauji Fertilizer Company (FFC), Air Blue, and Lucky Group are the contenders in the privatization effort, which is anticipated to conclude early next month. While all bidders have sought certain relaxations, officials have made it clear that PIA’s name, the national flag on its aircraft, and overall ownership will remain under Pakistani control.
The panel, which included Senators Saleem Mandviwalla, Atta-ul-Haq, and Anwar-ul-Haq, also learned about the severe financial repercussions of the airline’s operational challenges. The suspension of flights to the United Kingdom and Europe has resulted in losses exceeding Rs. 13 billion, significantly tarnishing the national carrier’s international standing. In 2018, the airline operated 1,420 flights on these lucrative routes, generating Rs. 36 billion in revenue, which dropped to 478 flights and Rs. 15 billion in 2019.
Addressing internal airline matters, Senator Mahmood instructed authorities to implement stringent measures against the misuse of PIA facilities. He called for the immediate cessation of free air travel privileges and urged legal action against any unlawful union activities within the organization.
The committee also reviewed the operational scope of the Airport Security Force (ASF), which provides security at 14 active and 16 non-operational airports, with the latter presenting an additional administrative challenge. The force is composed of 90% male and 10% female personnel.
In response to security concerns, Senator Saleem Mandviwalla recommended a comprehensive upgrade of passenger and baggage screening systems. The committee chairman underscored the necessity of employing modern technology, directing the implementation of a marking system on boarding passes of suspect passengers. He also drew attention to security vulnerabilities at smaller airports, particularly in Peshawar and Balochistan, demanding urgent improvements.
Furthermore, the non-availability of PIA services to Chitral Airport was a key point of discussion. Senator Mahmood highlighted the region’s strategic value as a potential gateway to Central Asia via Tajikistan and directed the airline to resume flights to Chitral immediately, ensuring at least one weekly service. A compliance report on this directive was sought within seven days.
The committee chairman also expressed deep concern over the dilapidated condition of roads leading to strategically vital areas such as Mastuj, Broghil, Shah Saleem, and Bumburet, emphasizing their importance for national defence and security.
The meeting commenced with a prayer for the martyrs of the recent terrorist attack in Mir Ali, with the chairman paying tribute to the armed forces and condemning cross-border terrorism originating from Afghanistan, which he described as part of a “larger hostile campaign initiated by India.”