{"id":128210,"date":"2026-01-05T15:06:00","date_gmt":"2026-01-05T09:36:00","guid":{"rendered":"https:\/\/aviationa2z.com\/?p=128210"},"modified":"2026-01-05T09:55:20","modified_gmt":"2026-01-05T04:25:20","slug":"pakistan-intl-airlines-privatisation-challenged-in-court-over-rs135-billion-sale","status":"publish","type":"post","link":"https:\/\/aviationa2z.com\/index.php\/2026\/01\/05\/pakistan-intl-airlines-privatisation-challenged-in-court-over-rs135-billion-sale\/","title":{"rendered":"Pakistan Int’l Airlines Privatisation Challenged in Court Over Rs135 Billion Sale"},"content":{"rendered":"\n

ISLAMABAD\u2014<\/strong> Pakistan International Airlines (PK)<\/a> is facing a fresh legal challenge after a constitutional petition was filed in the Islamabad High Court questioning the legality of its ongoing privatisation process. The petition seeks to block the sale of the national carrier and overturn the government-approved transaction finalized late last year.<\/p>\n\n\n\n

The case relates to the proposed transfer of a 75 percent stake in Pakistan International Airlines, headquartered in Islamabad, to a private consortium. The legal action comes as the government moves forward with what it describes as a cornerstone reform of the loss-making airline, aimed at long-term financial and operational recovery.<\/p>\n\n\n\n

\"Pakistan
Photo: By Shadman Samee from Dhaka, Bangladesh – AP-BLD: PIA A320 at DAC, CC BY-SA 2.0, https:\/\/commons.wikimedia.org\/w\/index.php?curid=90552601<\/figcaption><\/figure>\n\n\n\n

Pakistan Airlines Privatisation Challenged<\/h2>\n\n\n\n

The Cabinet Committee on Privatisation approved a Rs135 billion bid submitted by a consortium led by the Arif Habib Group for a controlling stake in the airline. <\/p>\n\n\n\n

The offer exceeded the government\u2019s reference price of Rs115 billion by roughly 35 percent, positioning it as the highest and winning bid in the process.<\/p>\n\n\n\n

In addition to the acquisition price, the consortium committed to injecting between Rs80 billion and Rs125 billion into the airline. <\/p>\n\n\n\n

These funds are intended for fleet modernisation, balance sheet repair, and operational restructuring, which the government has described as essential for restoring competitiveness and reliability.<\/p>\n\n\n\n

The transaction was formally concluded on Dec 23, following an Expression of Interest issued on May 7, 2025. Officials maintain that the sale structure balances investor confidence with the state\u2019s objective of exiting direct airline management.<\/p>\n\n\n\n

\"Pakistan<\/figure>\n\n\n\n

Constitutional Objections Raised<\/h4>\n\n\n\n

The petition was filed by Advocate Nabeel Javed Kahloon, who argues that the privatisation violates the Pakistan International Airlines Corporation (Conversion) Act, 2016, reported Dawn<\/a>. <\/p>\n\n\n\n

He contends that PIA qualifies as a trans-provincial institution listed under the Federal Legislative List, Part II.<\/p>\n\n\n\n

According to the petition, any decision to privatise such an entity requires approval from the Council of Common Interests under Article 154 of the Constitution. The petitioner claims no such approval was obtained, rendering the cabinet committee\u2019s decision unlawful.<\/p>\n\n\n\n

The filing also asserts that Parliament did not authorize the sale and that Sections 3 and 4 of the 2016 Act require any restructuring or asset transfer to remain within government-controlled entities. <\/p>\n\n\n\n

On this basis, the petitioner argues the transaction exceeds the government\u2019s legal authority.<\/p>\n\n\n\n

\"\"
Representative Photo- Pakistan International Airlines (YouTube)<\/figcaption><\/figure>\n\n\n\n