The Ministry of Privatisation has issued a formal order finalising the privatisation of Pakistan International Airlines (PIA) after dismissing all objections raised by workers’ unions and other petitioners, clearing the way for completion of the long-running sale process.
In a speaking order issued under directives of the Lahore High Court, Privatisation Secretary Hammad Hashmi stated that the entire process leading to the airline’s privatisation was conducted in accordance with the law, and none of the objections had legal merit. The order effectively ends disputes that had threatened to delay the transaction.
The decision followed a court directive on January 23, which required objectors to appear before the privatisation secretary so their concerns could be heard and addressed in a detailed order.
The secretary rejected a union argument that the privatisation should have been referred to the Council of Common Interests under Article 154 of the Constitution, stating that approval was already reflected in the inclusion of the sale in the privatisation list. He held that the transaction falls within the executive authority of the Federation under Article 173, which empowers the federal government to dispose of its property and enter into contracts.
An objection citing Section 3(3) of the PIAC Conversion Act 2016 was also dismissed on the basis that the relevant section had been removed by Parliament through an amendment in 2023, meaning the privatisation had been initiated after the statutory restriction was no longer in place.
The order further rejected claims of undervaluation of PIA’s international and domestic landing slots. Petitioners had asserted a valuation of Rs270 billion for international slots and Rs19 billion for domestic slots, but the secretary found these figures were unsubstantiated, lacking credible evidence or independent valuation reports.
The issuance of the speaking order by the Privatisation Ministry marks the closure of legal challenges and clears a significant hurdle in the national carrier’s privatisation process, allowing the transaction to move forward within the established legal framework.
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