The countdown has begun for what could be the most defining moment in the history of Pakistan International Airlines (PIA).
Pakistan Prime Minister Shehbaz Sharif has announced that the bidding for the national carrier will take place on December 23 and that the entire process will be aired live on television to ensure transparency.
It is a decisive step taken under a USD 7 billion IMF programme after years of mounting losses and failed rescue plans. The government tried selling the airline last year but walked away disappointed after receiving no worthwhile offer.
Now, with the pressure to stop the financial bleeding, the privatisation push is back and more aggressive than ever. Officials insist that this is the only viable route to restore PIA's dignity and align it with modern aviation demands.
For older Pakistanis and aviation enthusiasts across the world, it is a surreal moment. This was not just an airline. It was a symbol of the country's national ambition and pride.
Today, it stands as one of the most financially distressed airlines in the world, shadowed by scandals, mismanagement, and tragic crashes.
So, how did a carrier once considered among the best in the skies fall so spectacularly?
The Golden Years
PIA did not originally start as a government project. It began as Orient Airways, a private airline founded on October 29, 1946 in Calcutta by Mirza Ahmad Ispahani and business tycoon Adamjee Haji Dawood. The airline was created to serve the travel needs of Muslims in British India even before Pakistan was born.
After the creation of Pakistan in 1947, Orient Airways shifted its entire fleet and operations to the new country and became the first airline to support Pakistan's domestic and international travel needs.
In 1955, the Pakistani government nationalised Orient Airways. Photo: WikiCommons
In 1955, the Government of Pakistan nationalised Orient Airways and merged it into a new state-owned entity called Pakistan International Airlines Corporation (PIAC). Mirza Ahmad Ispahani became the first chairman of PIA, laying the operational foundations of the airline.
That early leadership played a major role in shaping PIA's identity and global ambition:
- The first managing director was Air Commodore Nur Khan, widely regarded as the force behind PIA's golden era
- It was under his leadership that PIA secured modern jets, opened new global routes, and trained pilots for other countries
- Nur Khan later became known as the most transformative leader in PIA's history - many aviation historians credit him for turning PIA into a world-class carrier within a decade
By 1960, it became the second Asian airline to operate Boeing 707 jets. At a time when countries were still figuring out how to build aviation frameworks, PIA was already mentoring others. Emirates, which is today one of the biggest airlines in the world, emerged with technical assistance from PIA.
Where The Cracks Began To Show
The airline's dominance did not survive the 1980s. Competition in the region grew sharper as Gulf carriers emerged with massive financial muscle and futuristic vision. Instead of upgrading to keep pace, PIA stumbled. Political interference became routine. Leadership changed frequently depending on who was in power, not who was qualified. Procurement decisions became controversial. Cost efficiency and business focus gave way to short-term gains and favouritism.
Over time, the airline became severely overstaffed. Every new government added more employees than the airline required, inflating costs and slowing productivity. Mismanagement and opaque finances turned the once-iconic airline into a struggling state entity dependent on bailouts.
The Safety Crisis
If the financial wounds were slow and painful, the reputational blow was devastating. In May 2020, Flight PK 8303 crashed near Karachi airport, killing 97 people. Investigations revealed disturbing violations in cockpit procedure and communication. The shock deepened when Pakistani authorities disclosed that more than 260 of the country's active pilots had questionable or fake licences.
The resulting punishment from global regulators was swift and severe. Europe, the UK, and the US banned PIA flights. These were some of its most profitable routes and losing access meant losing critical revenue. For many expatriates, especially Pakistani workers abroad, the airline was no longer a reliable or safe choice.
Debt, Outdated Aircraft, Cancellations, And Chaos
Years of operational losses have pushed PIA into crushing debt. The airline has been unable to modernise its fleet at the pace required for international competitiveness. Older aircraft meant higher fuel usage and higher maintenance costs. Fuel suppliers periodically halted services over unpaid bills. There were frequent cancellations and delays. Social media became flooded with passenger complaints. Brand loyalty that once came naturally, evaporated.
The airline that once guided the growth of Emirates now seemed hopelessly outpaced by its Middle Eastern rivals.
According to profit Pakistan Today, Pakistan International Airlines has reported a loss of over Rs 75 billion for the year 2023. The total liabilities of the airline have ballooned to Rs 825 billion while total assets are valued at Rs 161 billion. For context, Rs 825 billion is approximately $9.18 billion or Rs 82,500 crore.
Why Privatisation Feels Like The Only Option Left
Pakistan's economic crisis has left little room for political comfort. PIA has been a financial black hole for years and taxpayers have repeatedly paid the price. The IMF expects structural changes and selling the airline is central to that plan. Privatisation is expected to reduce the burden on the national exchequer and hopefully pull the airline out of decades of mismanagement.
Bidders for the airline have already been shortlisted. Corporate presentations and audits are underway. The government is portraying this as a turning point that could bring PIA back to international credibility.
What Lies Ahead
PIA continues to fly to a limited number of international and domestic destinations. The UK ban was lifted recently after reforms but bans remain in the US. The Europe ban was also lifted Janurary 10, 2026 (with an ad that was not received well). The airline is preparing for the transition to private ownership even as many employees worry about job cuts.
PIA apologised for the advert showing a plane flying towards Eiffel Tower.
Whether privatisation will restore the airline to its glory days or simply mark the final chapter of a long decline will depend on how the new owners handle its enormous challenges.
Fixing safety standards, rebuilding trust globally, modernising the fleet, reducing workforce inefficiencies, and ensuring transparency in finances will determine the airline's future.