IHC Seeks Government Response to Petition Challenging PIA Privatisation
- The Islamabad High Court has issued notices to the federal government and other respondents, seeking detailed replies within two weeks.
- People’s Unity has challenged the PIA bidding process and the selection of the Arif Habib Consortium as the successful bidder.
- The petition questions the legality, valuation and approval process behind the airline’s privatisation.
The Islamabad High Court has issued notices to the federal government and other parties on a petition filed by People’s Unity challenging the privatisation of Pakistan International Airlines.
Justice Arbab Muhammad Tahir issued the written order after hearing the petition and directed the respondents to submit their reports and paragraph-wise comments within two weeks.
Also Read:
The court also approved a miscellaneous application seeking permission to place written arguments on the record. Further proceedings were adjourned until the last week of October 2026.
People’s Unity has challenged the bidding process conducted on December 23, 2025, along with the decision to declare the Arif Habib Consortium the successful bidder. The petition also questions approvals granted by the Cabinet Committee on Privatisation and the federal cabinet in December 2025.
The petitioner argued that the term prescribed under the PIAC Conversion Act 2016 expired on June 30, 2025. According to the petition, the federal government later issued a gazette notification on March 6, 2026, extending the Act’s validity.
People’s Unity maintained that all privatisation-related decisions, proceedings and bids undertaken between the expiry of the Act and the issuance of the extension notification were unlawful.
The petition also alleged that the government relied on a valuation conducted in 2015 instead of obtaining and using an updated assessment of the national airline’s assets and financial position.
It further contended that the proposed privatisation was not presented before the Council of Common Interests for approval, despite the significance of the transaction.
People’s Unity said PIA employees hold a 12 per cent stake in the company under the Benazir Employees Stock Option Scheme. It alleged that the privatisation process was completed without meaningful consultation with key stakeholders, including the airline’s employees.
The petitioner maintained that the federal government had no legal authority to transfer shares owned by PIA workers and asked the court to review the legality of the entire privatisation process.
The Islamabad High Court will resume hearing the case in the last week of October 2026.
