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Constitutional petition filed in Lahore High Court against PIA privatization

Noor Fatima Afzal, Daily Dawn, Dawn TV Report

Lahore: A constitutional petition has been filed in the Lahore High Court against the recent privatization of Pakistan International Airlines.
The petition was filed by Advocate Nabil Javed Kahlon, calling the sale of the national airline illegal and unconstitutional and seeking its annulment.

The petition states that the Cabinet Committee on Privatization had approved a bid of Rs135 billion by a consortium led by the Arif Habib Group for a 75 percent stake in PIA.

The successful bid was about 35 percent higher than the government’s fixed price of Rs115 billion. The consortium has also pledged to invest another Rs80 to Rs125 billion for modernizing the fleet and improving the operational infrastructure.

The petitioner contends that the privatization process, particularly the Expression of Interest issued on May 7, 2025, and the subsequent sale on December 23, is in violation of the Pakistan International Airlines Corporation Conversion Act, 2016.

The petition states that the move of December 23 is in violation of the law relating to PIA.

According to the petitioner, while issuing the EOI, the federal government ignored the legal aspect that PIA is an inter-provincial institution which is included in the Federal Legislation List, Part II under the Constitution, hence privatization was not possible without the approval of the Council of Common Interests under Article 154 of the Constitution.

He says that the government, through a cabinet committee, illegally decided to privatize PIA without the approval of the Council of Common Interests and Parliament.

The petition has taken the stand that any restructuring or transfer of assets under Sections 3 and 4 of the 2016 Act should remain within the government-run institutions.

The petitioner said that huge public funds have been invested in PIA over the past several decades, hence its sale to a private group is a matter of paramount public interest.

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