Fauji Fertilizer Group’s entry into the consortium acquiring Pakistan International Airlines (PIA) is a positive development and will be beneficial, according to Prime Minister’s Adviser on Privatization, Muhammad Ali.
Speaking at a press conference in Islamabad on Wednesday, the adviser emphasized that PIA’s routes, not its aircraft, are perhaps the airline’s most valuable asset. He said privatization would help reverse years of decline caused by poor decisions, weak governance, and a failure to adopt new technology.
Muhammad Ali said PIA’s strongest asset is its domestic and international route network. The airline currently serves around 4 million passengers annually and holds roughly a 30 percent market share. He noted that while PIA once operated about 50 aircraft, the fleet should have expanded to around 100 over time, but instead shrank due to mismanagement. He said privatization would gradually help restore the airline’s standing and also contribute positively to GDP.
According to details shared during the presentation, PIA has a total fleet of 33 aircraft, of which 19 are currently operational. The fleet includes 16 Airbus A320 aircraft, with 11 in service, and 12 Boeing 777 aircraft, of which 6 are operational. Of the total fleet, 24 aircraft were acquired before 2010, seven between 2010 and 2013, and two in 2017.
20 aircraft are owned by PIA, while 13 are on lease.
The adviser said PIA’s performance started deteriorating after 1990. Previous attempts to privatize the airline in 1999, 2005, and 2024 failed. He added that since 2015, PIA has incurred losses of billions of rupees annually, largely due to a lack of digitalization and inability to compete in the global aviation market, particularly after the post-2000 technology boom.
Muhammad Ali added that the expression of interest for PIA’s privatization was issued on April 24, 2025, and the process was concluded on December 23, 2025, marking the first successful completion of the airline’s privatization after multiple failed attempts.