Pakistan To Sell PIA Under IMF Pressure; Army-Linked Fauji Foundation Among Bidders

Last Updated:December 04, 2025, 08:04 IST

Pakistan moves to privatise PIA, with Fauji Fertiliser Company Limited among bidders, under IMF pressure as economic crisis and military influence loom large.

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Under pressure from the Monetary Fund (IMF) to rein in spending and reform its collapsing economy, Pakistan has moved ahead with the privatisation of its loss-making flag carrier, Pakistan Airlines (PIA). Among the four entities shortlisted to bid is Fauji Fertiliser Company Limited, part of the powerful, military-run Fauji Foundation.

Prime Minister Shehbaz Sharif announced on Wednesday that PIA’s bidding will take place on December 23, 2025, and will be broadcast live across all media. He met representatives of the pre-qualified bidders in Islamabad.

Last month, Pakistan’s Privatisation Minister Muhammad Ali told Reuters that the government aims to raise PKR 86 billion in privatisation proceeds this year. Under the proposed structure, 15% of the proceeds from the previous bidding round were to go to the government, with the remaining funds retained within PIA.

According to a Pakistani newspaper, Dawn, the sell-off marks Pakistan’s first major privatisation in nearly 20 years. The four approved bidders are:

Military Influence Behind Fauji Foundation

Though Army Chief and de facto Pakistan power centre Field Marshal Asim Munir does not sit directly on the Fauji Foundation board, he exerts strong institutional influence. As head of Pakistan’s armed forces, Munir appoints the Quartermaster General (QMG), who sits on the Foundation’s Central Board of Directors. Through such appointments and strategic oversight, the military maintains significant sway over one of Pakistan’s largest corporate conglomerates.

A Country Caught in a Debt Trap

The privatisation push comes as Pakistan survives on repeated bailouts and rollovers. Its economy nearly collapsed in 2023 under the weight of mounting loans, chronic mismanagement, and heavy defence spending. Pakistan is currently the IMF’s fifth-largest debtor, having taken more than 20 loans since 1958.

The latest $7-billion IMF programme, approved in September 2024, released $1 billion upfront, with the rest tied to strict fiscal reforms—including the sale of state-owned enterprises such as PIA.

How PIA Crumbled: Fake Licences, Crashes, Corruption and Chronic Mismanagement

PIA’s downfall has been decades in the making, but the crisis exploded in 2020 when the government admitted that over 30% of Pakistani pilots held fake or dubious licences. The revelation forced the grounding of 262 pilots and triggered global shock.

The fallout was swift and devastating:

Meanwhile, PIA was already buckling under chronic overstaffing, political interference, nepotism and corruption. Its bloated workforce and mismanaged operations pushed losses beyond PKR 200 billion.

The crisis was compounded by the 2020 crash of PIA Flight 8303, which not only killed 97 people but also triggered expensive safety audits, groundings and emergency repairs. With resources drained and international bans in place, the airline spiralled deeper into financial ruin.

PIA’s collapse mirrors Pakistan’s own trajectory: not the result of a single catastrophic event but of prolonged systemic failures, weak governance, and entrenched institutional decay.

News world Pakistan To Sell PIA Under IMF Pressure; Army-Linked Fauji Foundation Among Bidders

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