The Islamabad High Court (IHC) has issued notices to the federal government and other respondents over a petition challenging the privatization of Pakistan International Airlines (PIA).
The court has asked the respondents to submit their reports within two weeks. The petition came from Peoples Unity, which has challenged the outcome of the PIA bidding process held last year.
The bidding process selected the Arif Habib Consortium as the successful bidder for a major stake in the national airline. The petition questions the approvals that followed from the Cabinet Committee on Privatization (CCoP) and the federal cabinet.
Justice Arbab Muhammad Tahir issued the written order after hearing the case. The court also accepted a miscellaneous application to place written arguments on the record.
Court Seeks Reports From Respondents
The IHC has given the respondents two weeks to respond to the allegations. The court then adjourned the case until the last week of October 2026.
The petitioner’s lawyer raised several legal objections during the hearing. The lawyer argued that authorities failed to meet certain statutory requirements during the privatization process.
One major issue involves the PIA Corporation Conversion Act, 2016. The petitioner claims that the law had expired and that authorities should have addressed its legal status before moving forward with the transaction.
The petition also questions the absence of mandatory clearance from the Council of Common Interests (CCI). According to the petitioner, this raises concerns about the transparency and legality of the privatization process.
PIA Privatization Faces Long-Running Opposition
The government has made PIA’s privatization a key part of its economic reform plans. Officials have argued that the move can reduce the financial burden created by loss-making state-owned enterprises.
PIA has required substantial government support over many years. Successive governments have therefore explored different ways to restructure the airline and prepare it for private investment.
Authorities have separated parts of PIA’s operations and liabilities as part of those efforts. The restructuring aimed to make the airline more attractive to private investors and potential international partners.
However, the privatization plan has faced strong opposition. Labour unions and employee associations have raised concerns about the future of workers and the value placed on PIA assets.
Legal experts have also questioned aspects of the process. Their concerns include asset valuations, transparency and whether officials followed all required legal procedures.
The latest court proceedings could add another layer of uncertainty to the government’s efforts to complete the PIA privatization. The case will return before the Islamabad High Court in October, when the court is expected to consider the responses from the government and other respondents.
