PIA privatisation called “largest economic scam in national history,” says white paper

Islamabad: The Pakistan People’s Labour Bureau, in collaboration with the Peoples Unity of PIA (CBA), has released a comprehensive white paper strongly criticising the proposed privatisation of Pakistan International Airlines (PIA), terming it “the largest economic scam in the country’s history.”

Speaking on the occasion, Labour Bureau in-charge Chaudhry Manzoor Ahmed raised serious questions over government policy, arguing that the privatisation process lacks transparency and proper justification.

According to the white paper, PIA recorded a net profit of Rs 26 billion in 2024 from its operations and generated an operating cash flow of Rs 17.3 billion. Despite this, the airline is reportedly being considered for transfer to the private sector for approximately Rs 10 billion.

Chaudhry Manzoor questioned the rationale behind selling a profitable national institution, stating that an entity generating billions in annual profit cannot be justified for sale at such a low valuation.

The report further claims that PIA’s total assets are valued at Rs 187.288 billion, while only 11 of its real estate properties alone carry an estimated market value of Rs 33 billion—three times higher than the proposed sale price.

It also highlights that a single landing slot at London Heathrow Airport held by PIA could generate up to Rs 10 billion annually, roughly equal to the proposed entire valuation of the airline. The airline reportedly holds more than 170 international slots and operates over 30 profitable international routes, along with 18 active aircraft, seven hangars, and an extensive global network.

The white paper also raised legal concerns, stating that the privatisation process violates Article 154 of the Constitution as it has allegedly not been approved by the Council of Common Interests (CCI). It further argued that the PIACL Conversion Act 2016 expired on June 30, 2025, rendering the current restructuring process legally questionable.

The report warned that full privatisation could lead to private monopolies, increased airfares, and reduced connectivity to remote regions such as Skardu, Gilgit, and Gwadar, where PIA currently provides essential air services.

The Labour Bureau recommended partial divestment instead, suggesting that 20–30 percent of shares be sold through the stock exchange to ensure transparency while retaining national control. It also called for an independent international valuation of PIA’s assets prior to any transaction.

Chaudhry Manzoor concluded that the process is not privatisation but “auctioning of national assets,” adding that the labour movement would resist the decision at all levels.