Following the successful privatization of Pakistan International Airlines (PIA), the Privatization Commission (PC) has sought an increase in its annual budget.
According to sources, the Privatization Commission informed the Senate Standing Committee on Privatization about its proposal to increase the annual budget. The aim is to enable the hiring of market based experts on competitive salaries, strengthen institutional capacity, and accelerate the privatization process in the coming year. Sources said the meeting of the Senate Standing Committee on Privatization was held on Friday under the chairmanship of Senator Dr. Afnan Ullah Khan, during which approval and utilization of the budget over the past six months were reviewed.
Sources added that the committee reviewed the utilization of the existing budget of the Ministry of Privatization and was informed that both the Privatization Division and the Privatization Commission are operating with limited resources, a large portion of which is spent on employee related expenses. According to the secretariat, the Privatization Commission reiterated its request for a budget increase so that market based specialists could be hired on competitive pay, which is essential for enhancing institutional capacity and speeding up privatization efforts next year.
For the fiscal year 2024–25, an allocation of Rs 8.17 billion had been approved for the commission. In December 2025, the Government of Pakistan completed a deal to sell a 75 percent stake in the national airline for Rs 135 billion, ending years long stalled efforts to privatize the loss making airline. The controlling stake in the national airline was acquired by the Arif Habib Consortium, which includes Arif Habib Corporation Limited, Fatima Fertilizer Company Limited, City Schools (Private) Limited, and Lake City Holdings (Private) Limited.
According to reports, committee members questioned the need for new hiring, particularly given that the privatization of PIA was successfully completed with the existing workforce. In response, the commission clarified that specialized market experts are indispensable, as a single expert can handle a maximum of two privatization projects at a time. It was further explained that sector specific expertise, especially for the privatization of power distribution companies (DISCOs), is critically important.
The chairman of the Senate panel appreciated the commission’s efforts and, in principle, agreed with the proposal to hire experts to enhance operational capacity. Sources said the committee was also informed that there is currently no Public Sector Development Programme (PSDP) project under the Ministry of Privatization, therefore no PSDP funds are required at present.
During the same meeting, the committee held a detailed discussion on the PIA privatization process and reviewed various aspects of the transaction. The Secretary of the Privatization Commission informed the committee that the complete privatization process is expected to be finalized within 90 to 120 days.
During the session, Senator Palwasha Mohammad Zai Khan sought detailed information regarding the assets of PIA Holding Company Limited (HoldCo), including the total number of hangars, spare parts, and other technical assets. The secretary assured that the requested data would be provided in the next meeting.
The committee was also briefed on the outsourcing of landside services at Islamabad International Airport. Members highlighted the deteriorating condition of passenger facilities, including food services and washrooms, and observed that outsourcing could improve service delivery, as governments are generally not well suited to run commercial operations. The commission informed the committee that outsourcing airport services is a priority area.
The Senate committee recommended that outsourcing at major airports be combined with smaller airports such as Quetta and Sukkur, so that service improvements can be ensured evenly across the network, rather than reallocating resources at a later stage.
