Home PakistanPIA Privatization Challenged in Lahore Hight Court

PIA Privatization Challenged in Lahore Hight Court

by Mahnoor Arif

The privatization of Pakistan International Airlines (PIA) has been challenged in the Lahore High Court, adding a new legal hurdle to the government’s plan to sell a majority stake in the national flag carrier.

A citizen has filed a petition questioning the legality of the proposed sale of a 75 percent stake in PIA to a private consortium. The petitioner argues that the process violates the Constitution and existing laws, as it was allegedly carried out without mandatory approval from the Council of Common Interests and Parliament. According to the petition, such approvals are required when decisions involve national assets and matters affecting the federation and provinces.

The plea further raises concerns about a lack of transparency in the privatization process. It claims that key details of the deal were not made public and that relevant stakeholders were kept out of the decision making process. The petitioner has also alleged misuse of authority by concerned officials, stating that the move could cause long term financial and strategic harm to the national airline.

PIA has faced financial losses for years, prompting the government to pursue privatization as part of broader economic reforms. Supporters of the move argue that private ownership could improve efficiency, reduce losses, and enhance service quality. However, critics warn that rushing the process without legal safeguards may undermine public interest and accountability.

The Lahore High Court has been asked to suspend any further action on the privatization deal until the case is decided. The court is expected to examine whether constitutional requirements were followed and if the sale complies with laws governing state owned enterprises.

The case is likely to spark wider debate on the future of PIA and the legal framework for privatizing national institutions.

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