ISLAMABAD: The PIA Employees’ Combined Bargaining Agent (CBA), People’s Unity, has urged the government to halt the privatisation of Pakistan International Airlines (PIA), claiming the process lacked transparency and that employees were excluded from participation. The union’s plea comes ahead of the signing of the airline’s share purchase agreement (SPA) and the planned transfer of management control to an Arif Habib-led consortium.
In a letter addressed to PIA’s board, the Ministry of Defence, and the Ministry of Privatisation, the union alleged that the bidding process was conducted without sufficient oversight, and that the CBA—which represents the airline’s workforce—was denied an opportunity to participate. People’s Unity argued that it possesses the expertise to turn around the loss-making national carrier through professional management and a competent board.
Union President Hidayatullah Khan warned that the government was repeating “the blunder” of selling the airline to Arif Habib Group, citing the consortium’s controversial past, including an earlier takeover attempt of Pakistan Steel Mills that was declared illegal by the Supreme Court and a recent Rs1.5 billion fine imposed by the Competition Commission of Pakistan for alleged cartelisation in the steel sector.
The union claimed that the privatisation process, from expression of interest to final bidding, was conducted “without due diligence” and bypassed oversight mechanisms, including the Council of Common Interests (CCI). It argued that under the 2016 amendments to the PIA Act, the conversion of PIA into a public limited company did not permit the outright transfer of majority ownership to private entities.
The union contended that blaming PIA and its employees for the carrier’s performance was unjustified.https://t.co/HcfhoKAoS7
— Dawn.com (@dawn_com) January 5, 2026
Quoting the Supreme Court’s 2006 ruling in the Pakistan Steel Mills case, the union highlighted concerns over prequalification, asset valuation, and other legal irregularities in privatisation processes. It alleged that the Arif Habib Group and associated public office holders remained unaccountable and were allowed to prequalify for the PIA sale despite pending legal challenges.
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The union also defended PIA employees, asserting that the airline’s poor performance was a result of management decisions and board policies rather than workforce inefficiency. People’s Unity proposed that with proper oversight, a professional board, and technical guidance, the existing workforce could turn around the airline without privatisation.
The CBA has requested an urgent meeting with relevant authorities, including the Ministry of Defence, the Special Investment Facilitation Council (SIFC), the Privatisation Commission, and parliamentary committees, to present its counter-proposal and technical details for reviving PIA. The union also threatened to challenge the privatisation process before parliamentary and judicial bodies if its concerns are not addressed.
The move reflects growing tensions as the government prepares to finalise the long-delayed privatisation of the state-owned carrier, which has struggled with financial losses and operational inefficiencies for years.
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