LAHORE: The Lahore High Court on Thursday dismissed a petition challenging the privatization of Pakistan International Airlines (PIA), confirming that the process was conducted in accordance with legal and procedural standards.
The petitioner had raised concerns over alleged irregularities and lack of transparency during the privatization process. However, the court found that the procedures followed were in line with the provisions of the privatization Commission Ordinance, Articles 23 and 24, as well as Article 173 of the Constitution and the 2000 Ordinance.
In its verdict, the court highlighted that the government retains a 96% stake in PIA and emphasized that a competitive sale was essential for helping the airline address its financial difficulties. The judiciary also observed that the privatization Commission had fulfilled its legal responsibilities properly and that economic policy decisions are within the domain of the executive branch, thereby limiting judicial interference.
The judgment reinforced that the privatization was carried out fairly, transparently, and in accordance with constitutional and legal guidelines. Barrister Manal Tariq appeared on behalf of the privatization Commission during the hearing.Meanwhile, the privatization of PIA’s Roosevelt Hotel in the United States has faced another delay due to the restart of the process for selecting a new financial advisor. The privatization Commission has called for fresh applications from interested firms, which must include a non-refundable fee of $1,000.
Applications for the advisory role are due by September 2nd and should be submitted to the privatization Commission in Islamabad.
In addition, the PIA privatization effort is gaining momentum as one of the bidding companies is scheduled to visit the airline’s headquarters. During the visit, representatives are expected to inspect aircraft, review key airline records, and tour other important facilities, aiding their evaluation process.
