• OICCI expects foreign interest once new management stabilises operations • Privatisation debate ignores what passengers actually need, says ex-PBC CEO KARACHI: Business stakeholders have offered positive views of Pakistan International Airlines’ (PIA) acquisition by the Arif Habib consortium , with some seeing it as a chance to improve service and safety, while others say it could help revive investor confidence and accelerate the privatisation of other state-owned enterprises (SOEs). Chief Executive and Secretary General of the Overseas Investors Chamber of Commerce and Industry (OICCI) M. Abdul Aleem told Dawn he viewed the transaction as a positive step towards privatisation and said the government should be commended for handling the process “professionally”. “We are positive that once things are stabilised by the new management, PIA will attract foreign investors,” he said, adding that the next few years would be critical and that the new management should be supported by all stakeholders. Former Pakistan Business Council CEO Ehsan Malik said the debate on PIA’s privatisation had largely overlooked what matters most to travellers. While policymakers focus on valuation, liabilities and timing, passengers, he said, judge airlines on simpler things such as punctuality, cleanliness, safety, staff response and route reliability. On these basic metrics, PIA had steadily lost public trust, he added. Mr Malik said passengers today booked PIA not out of preference but compulsion, citing limited alternatives on some routes, especially to smaller cities, lack of competition during peak travel periods and affordability concerns. Frequent delays, last-minute cancellations, inconsistent communication and poor ground handling had become routine, he said, adding that overseas Pakistanis increasingly viewed PIA as an airline of last resort rather than a preferred flag carrier. “Privatisation, from a passenger’s standpoint, is not about selling an asset; it is about restoring accountability,” he said. “A privately run airline — properly regulated — has incentives aligned with customer satisfaction. Aircraft utilisation matters, turnaround times matter, complaints matter. Missed connections and lost baggage carry real costs for the operator, not just inconvenience for the traveller.” “Critically, passengers do not need PIA to be ‘nationally owned’; they need it to be professionally run,” he said, adding that “pride in a flag carrier does not come from state ownership but from performance.” He added, “Turkish Airlines, Emirates and Qatar Airways inspire national pride precisely because passengers trust them — not because of who owns the shares.” ‘Turning point’ Meanwhile, the leadership of the Karachi Chamber of Commerce and Industry (KCCI) urged the government to speed up the privatisation of other SOEs, saying the state spends nearly Rs800 billion annually to keep loss-making entities afloat. Chairman of the Businessmen Group Zubair Motiwalla and KCCI President Muhammad Rehan Hanif said privatising PIA alone was expected to save about Rs100bn a year previously used to cover the airline’s losses. They argued the funds could be redirected towards development, social services and economic growth. They opined that if more state-owned enterprises are privatised and taken over by capable Pakistani business groups, it would help restore Pakistan’s economic strength and credibility. Such developments would clearly signal to the international community that Pakistan is an investable destination where local investors have strong confidence in the country’s future and are willing to invest and revive strategic national assets, they added. PIA, once regarded as one of Asia’s finest airlines and a symbol of national pride, suffered decades of financial losses, operational inefficiencies and governance challenges under state ownership. The successful privatisation, carried out through a transparent and competitive process, marks a turning point that offers a realistic opportunity to reverse this long decline and restore PIA’s lost stature both regionally and internationally, they added. They hoped that PIA, under professional private management, could once again emerge as one of the most profitable and respected carriers, not only in Pakistan but across the entire region. Shankar Talreja of Topline Securities, commenting on the historic $480 million deal in the last 20 years, was of the view that the bid value has significantly surpassed the market expectations of Rs80-100bn. “The potential of turnaround in PIA is quite significant due to its landing rights over 78 destinations and 170 slots. Furthermore, this is a national airline of the world’s fifth most populous nation,” he said. He said PIA’s deal would boost the morale of the privatisation ministry and set the tone for the next entities up for privatisation, i.e. electricity distribution companies (Discos). Published in Dawn, December 26th, 2025