Court petition seeks annulment of PIA privatization
A constitutional petition has been filed in the Lahore High Court (LHC) contesting the
recent privatization of Pakistan
International Airlines (PIA), terming the move illegal and
unconstitutional.
Submitted by Advocate Nabeel Javed Kahloon, the
petition seeks annulment of the sale of the national carrier. It challenges the
Cabinet Committee on Privatisation’s (CCoP) approval of a Rs135 billion bid by
an Arif Habib Group-led consortium for a 75 per cent stake in PIA.
The accepted bid was about 35 per cent higher
than the government’s reference price of Rs115bn. The consortium has also
committed to investing an additional Rs80bn to Rs125bn for fleet upgrades and
operational restructuring.
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The petitioner argues that the privatization
process—beginning with the Expression of Interest (EOI) issued on May 7, 2025,
and culminating in the sale on Dec 23—violates the Pakistan International
Airlines Corporation (Conversion) Act, 2016.
He contends that PIA is a trans-provincial
institution listed in the Federal Legislative List (Part II), and therefore any
privatization required prior approval from the Council of Common Interests
(CCI) under Article 154 of the Constitution. In the absence of such approval,
he maintains, the sale is unlawful. He further argues that neither the CCI nor
Parliament authorised the privatisation, rendering the cabinet committee’s
decision invalid.
According to the petition, Sections 3 and 4 of
the 2016 Act require that any restructuring or transfer of assets remain within
government-controlled entities. The lawyer also highlights that substantial
public funds have been invested in PIA over the years, making its sale a matter
of significant public importance.
The petitioner disputes the government’s
justification for privatization, alleging that PIA was wrongly portrayed as a
burden on the public exchequer and undervalued by comparing its worth to
accumulated losses of around Rs800bn. He claims the airline has not been
reliant on government grants or subsidies and that its financial challenges stem
from debt servicing, mismanagement and flawed policies.
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He further alleges that the privatization
process lacked transparency, involved misuse of authority and was arbitrary.
The petition also challenges a Dec 14, 2023 amendment to Section 28 of the Privatisation
Commission Ordinance, arguing that it does not bar judicial review in cases
involving constitutional and legal violations.
Advocate Kahloon, known for representing
aviation sector employees, also claims he has faced harassment for opposing the
privatization.
The
petition requests the court to declare the Dec 23, 2025 agreement null and
void, suspend all subsequent actions arising from the May 2025 EOI, and direct
that any necessary restructuring be carried out strictly within state-owned
entities.
Source:
Dawn