Two more petitions against the privatization of PIA rejected by IHC
The Islamabad High Court (IHC) has dismissed another petition challenging the privatization of Pakistan International Airlines (PIA), reaffirming the federal government’s authority to manage and dispose of state-owned enterprises.
The petition, filed by the People’s Unity of PIA Employees — a registered Collective Bargaining Agent (CBA) — sought to halt the privatization process, expressing concerns over the restructuring of the airline, which has been separated from non-core assets and legacy debt under the ongoing debt-lite restructuring plan.
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Justice Khadim Hussain Soomro ruled that privatization falls within the executive’s powers under Article 173 of the Constitution, which authorizes the government to acquire, hold, and dispose of public property. He emphasized that courts may only intervene in such matters if there is evidence of illegality, corruption, or arbitrary action.
The judgment referenced key precedents, including Hidayat Ullah v. Federation of Pakistan (2022) and Dr. Akhtar Hassan v. Federation of Pakistan (2012), reiterating that challenges to economic policy must be supported by proof of mala fides or statutory violations.
The court also noted that the petitioner’s plea appeared aimed at obstructing a legally compliant and transparent privatization process. It underscored the Supreme Court’s guidance on judicial restraint in economic matters and highlighted the importance of specialized commercial courts for such disputes.
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With this ruling, the government is cleared to continue offering the restructured, debt-lite PIA to potential investors — marking another significant step forward in the airline’s privatization plan.
The People’s Unity of PIA Employees has filed nine petitions against the privatization process so far, and with the latest order, five of these have now been dismissed.
Barrister Minaal Tariq, counsel for the Privatization Commission, said the court’s decision strengthens investor confidence at a crucial time. She noted that by upholding the process as fully compliant with Article 173, the judgment sends a clear message that the judiciary will safeguard the government’s economic policy decisions and support ongoing reforms.
Source: Hum English