The National Assembly on Thursday passed the Pakistan International Airlines Corporation (Dissolution) Bill 2026 after a vigorous debate concerning the airline’s privatisation, its accumulated financial losses, and the framework for its future restructuring.
Opposition members expressed concerns about the transparency and outcomes of the bidding process, questioning the fairness and clarity of the privatisation efforts. Meanwhile, the government defended the initiative as a crucial part of wider economic reforms aimed at alleviating the financial burden caused by loss-making state-owned enterprises.
During the session, former minister Naveed Qamar raised questions about the current status of the privatisation process, urging the government to provide detailed information about the bidding exercise and its results.
Minister of State for Finance Muhammad Ali informed lawmakers that PIA had suffered losses totaling Rs500 billion over the past 15 years. He explained that under the privatisation plan, 75 percent of the airline’s shares had been auctioned, with an option to sell the remaining 25 percent to private investors. The airline was valued at Rs180 billion during this auction process.
In a significant development, Muhammad Ali announced that Rs125 billion would be dedicated to the airline’s improvement and restructuring following the transaction. He also assured the assembly that the new management would be prohibited from laying off employees for at least one year after taking control, providing some job security amid the changes.
After thorough deliberations, the National Assembly approved the Pakistan International Airlines Corporation Dissolution Bill 2026, clearing the path for the proposed restructuring and privatisation of the national flag carrier.
