IHC issues notices over PIA privatisation
The Islamabad High Court (IHC) has issued notices to the federal government and other respondents over a petition challenging the privatisation of Pakistan International Airlines (PIA).
Justice Arbab Muhammad Tahir issued the written order after hearing the case and directed the respondents to submit reports and para-wise comments within two weeks.
The court also accepted a miscellaneous application seeking to place written arguments on record.
Further proceedings have been postponed until the last week of October 2026.
PIA bidding process challenged
The petition was filed by People’s Unity.
It challenges the PIA bidding process held on December 23, 2025, as well as the decision to declare the Arif Habib Consortium the successful bidder.
The petition also questions approvals given by the Cabinet Committee on Privatisation and the federal cabinet in December 2025.
The petitioner has raised several questions about whether the privatisation process followed the law.
Questions over the law
One major argument concerns the PIAC Conversion Act 2016.
According to the petitioner, the law expired on June 30, 2025.
The federal government later issued a gazette notification on March 6, 2026, extending the law.
Read Also:HEC equivalence does not guarantee university admission, FCC rules
The petitioner argued that actions taken between the expiry of the law and the later notification were therefore unlawful.
The case has also raised concerns about whether the required legal procedures were followed during the sale process.
Dispute over PIA valuation
People’s Unity has also questioned the valuation used during the privatisation process.
The petitioner claimed that an old valuation from 2015 was used instead of a fresh assessment.
It also argued that the matter should have been presented before the Council of Common Interests for approval.
These claims are now part of the legal challenge before the IHC.
PIA employees’ stake questioned
Another important issue concerns PIA employees.
The petition states that employees hold a 12% stake in the airline under the Benazir Employees Stock Option Scheme.
The petitioner alleged that employees were not properly consulted before the privatisation process was completed.
It further argued that the government did not have the authority to transfer shares belonging to PIA employees.
The petition has therefore questioned both the legal process and the protection of employees’ interests.
What happens next?
The IHC has not given a final decision on the legality of the privatisation.
For now, the court has only sought responses from the government and other parties.
The respondents have two weeks to submit their reports and comments.
The case will return to the court in the last week of October 2026.
The latest development adds another legal challenge to the government’s effort to privatise the national airline.
