The Supreme Court of Pakistan has withdrawn its stay order on the privatization of Pakistan International Airlines (PIA), paving the way for the federal government to resume the long-delayed process. The decision was made on Thursday by a constitutional bench headed by Justice Aminuddin Khan.
During the hearing, the additional attorney general (AAG) informed the court that the privatization process had been initiated following earlier court orders, which also allowed PIA’s management to hire new professionals. However, recruitment efforts had been stalled due to the privatization plan. The AAG further noted that restrictions on the airline’s flight operations had been lifted, enabling PIA to operate without constraints.
Justice Aminuddin remarked that resuming the privatization process at this stage could potentially secure higher bids for the airline. However, Justice Jamal Khan Mandokhail raised concerns about ensuring transparency, reminding the government of a previous Supreme Court order that required the privatization process to be conducted with the court’s confidence and in a transparent manner.
The AAG assured the court that an application had been filed to seek the court’s confidence in the process. Justice Mandokhail advised the government to ensure the privatization is carried out efficiently and in good faith. Following these assurances, the court disposed of the petition and lifted its earlier directive halting the privatization.
The federal government’s efforts to privatize PIA had previously stalled when the sole bidder offered a significantly lower amount than anticipated, forcing authorities to reconsider their strategy. However, the Supreme Court’s decision now allows the government to restart the process with renewed focus.
In a positive development for the airline, the European Union (EU) recently lifted its four-year ban on PIA, allowing the carrier to resume flights to European destinations. This move is expected to improve the airline’s operational prospects and potentially increase its valuation during the privatization process.
The government hopes that the resumption of the privatization process, coupled with the lifting of the EU ban, will help PIA overcome its financial challenges and attract competitive bids.
