ISLAMABAD – President Asif Ali Zardari has approved the PIA Corporation (Conversion) (Repeal) Ordinance, 2026 on the prime minister’s advice, according to a statement issued by the Media Wing of the Aiwan-e-Sadr on Sunday. The ordinance aims to fulfill legal requirements for completing the process related to the transfer of certain PIA assets.
The assets included in the transfer process comprise key properties in multiple cities across Pakistan.
Assets in Karachi
In Karachi, the ordinance covers:
- PIA Planetarium Karachi
- Land in Gulshan-e-Iqbal
- A football ground in KDA Scheme-I
- Land of the Jehangir Khan Sports Complex on Kashmir Road
Assets in Lahore
In Lahore, the assets include:
- PIA Planetarium Lahore
- Land of the Old University Ground
- An office in Dyal Singh Mansion on Empress Road
Assets in Peshawar
In Peshawar, the ordinance covers land situated in Hayatabad Phase II, where a PIA Planetarium is located.
Purpose of the Ordinance
Officials said the ordinance is part of efforts to complete legal formalities concerning asset transfers linked to PIA’s restructuring process. The federal government has finalized the privatisation of PIA, the national flag carrier, selling a 75% stake to an Arif Habib-led consortium for Rs135 billion.
PIA Privatisation Background
The privatisation of PIA has been a long-standing goal of successive governments, aimed at stemming the airline’s financial losses and improving efficiency. The national carrier has accumulated billions of rupees in debt over the years, requiring repeated government bailouts.
The sale of a 75% stake to the Arif Habib-led consortium is the culmination of a process that began several years ago. The consortium is expected to bring private sector management and investment to turn around the loss-making airline.
Analysis: A Necessary Step
The transfer of PIA’s assets — including prime real estate in Karachi, Lahore, and Peshawar — is a necessary step in the privatisation process. The assets are being separated from the airline as part of the restructuring.
The ordinance provides the legal cover for the transfer. The assets will likely be managed by a separate entity, with proceeds potentially used to pay down PIA’s debt.
The privatisation of PIA is controversial. Critics argue that the national carrier should remain in public hands; supporters argue that private management is the only way to make the airline viable.
The success of the privatisation will depend on the consortium’s ability to turn around PIA’s operations while maintaining safety standards. The transfer of assets is a procedural step; the real test lies ahead.
