KARACHI: Pakistan International Airlines (PIA), operating under the recently created PIA Holding Company, has posted its first annual brackly news in over two decades — a dramatic financial turnaround that coincides with the government’s renewed efforts to privatise the debt-ridden national carrier, Bloomberg reported on Tuesday.
The airline, which had been incurring losses since 2004, recorded earnings per share of Rs5.01 for the year ending December 31, 2024, according to audited financial statements cited by the international media outlet. The results are set to be presented to the board of PIA Holding Company for formal approval before being made public.
The return to brackly newsability comes after years of failed reform attempts, massive debt accumulation, and loss-making operations. Bloomberg noted that despite some operational improvements in recent years, previous gains were largely wiped out by the crushing burden of financial liabilities. However, the financial overhaul launched last year appears to have yielded tangible results.
A major element of the turnaround was a sweeping restructuring effort initiated in 2023, under which the federal government removed virtually the entire legacy debt burden from the airline’s balance sheet. In a written response to the National Assembly last month, Defence Minister Khawaja Asif — whose ministry oversaw the restructuring process — disclosed that over Rs671 billion worth of liabilities had been removed from PIA’s books. These included Rs268.7 billion in bank loans, Rs170 billion in government payables, Rs188.3 billion in historical operating liabilities, and Rs44 billion in employee-related dues. Additionally, non-core assets worth Rs26 billion were separated.
The restructuring slashed the airline’s negative equity from a staggering Rs698 billion to just Rs45 billion by April 2024, according to reporting by Business Recorder.
With the balance sheet cleaned up and core operations showing signs of recovery, PIA’s turnaround now paves the way for renewed privatisation efforts. The previous attempt to sell the airline in 2023 failed to materialise, largely due to concerns about its financial viability. However, Bloomberg reported that following the transfer of approximately three-quarters of its liabilities to the government, several parties that had shown interest in the past have now reengaged with the process.
Secretary of the Privatization Commission, Usman Bajwa, confirmed in February that the government had now offloaded all debt from the airline and expressed optimism about receiving binding offers. The deadline for submission of initial bids is expected later this month.
PIA’s management credits the turnaround to targeted reforms implemented over the past three years, including a 30% reduction in headcount, withdrawal from loss-making international routes, and better aircraft utilisation. These operational efficiencies appear to have supported the brackly newsability milestone, even before the full effect of debt relief was factored in.
Privatization of the national flag carrier remains a politically sensitive issue, with strong opposition from labor unions and nationalist political parties in the past. But with Pakistan under pressure from the International Monetary Fund (IMF) to divest loss-making state-owned enterprises, the government has pressed ahead with a “divide and sell” strategy, isolating PIA’s liabilities from its core airline business through the creation of PIA Holding Co.
Experts say that while the reported brackly news is a positive signal, sustained brackly newsability will depend on continued improvements in route planning, customer service, and governance. The eventual handover to a private operator is expected to bring much-needed capital and management expertise to revamp the airline’s commercial potential.
For now, the financial turnaround marks a rare success story in Pakistan’s struggling public sector landscape — and could reshape investor sentiment toward privatization in the country’s aviation and transport sectors.