SIALKOT: Aviation Minister Khawaja Asif has welcomed the decision of the European Commission and European Aviation Safety Agency (EASA) to lift the suspension on Pakistan International Airlines (PIA), stating that the move will enhance the value of the struggling national carrier.
“This is an important development for PIA’s upcoming privatization efforts. It will add significant value to the deal,” Asif said during a press conference in Sialkot on Saturday.
The comments came a day after EASA officially ended its ban on PIA, paving the way for the airline to resume operations to Paris, France, after more than four years of restrictions. This decision comes after a year-long process that included visits by teams from the European Aviation Safety Agency (EASA) and the European Commission to Pakistan.
The privatization of PIA has posed a major challenge to the authorities in Islamabad. The government initially offered a 51% to 100% stake in the debt-laden airline as part of International Monetary Fund-recommended reforms linked to a 37-month, $7 billion bailout programme. However, the first privatization attempt faced setbacks.
Only one bid was made, from Blue World Consortium, for a 60% stake, worth Rs. 10 billion – much less than the Privatization Commission Rs. 85 billion minimum price. The offer was rejected, prompting the government to begin a second privatization attempt.
Minister Asif praised the efforts of government officials and his team, stressing the foundations laid by former Aviation Minister Saad Rafique during the PDM government. “Saad Rafiq’s leadership laid the foundation for these achievements, and we have now reached our goal,” he said.
He also highlighted the challenges faced by PIA, noting that it owns only 30% of Pakistan’s aviation market, while foreign airlines dominate the remaining 70%. Despite this, Asif expressed optimism, saying that lifting the EASA ban would enable PIA to restore European and other international traffic.
Asif revealed that the European Aviation Safety Agency has also approved Air Blue for operations, while another Pakistani airline is under scrutiny and is expected to get approval soon. He urged his hometown airline, Air Sial, to pursue EASA registration to enable flights to Europe and further strengthen Pakistan’s aviation market presence.