Pakistan International Airlines (PIA) announced a pre-tax profit of Rs11.5 billion ($40.64 million) for the first half of 2025. A company source called it the airline’s first such profit since 2004 while preparing to privatise the state-owned carrier, a key part of its $7 billion IMF bailout.
PIA, under PIA Holding Company, reported a net profit of Rs6.8 billion for January to June 2025. Last year, it incurred losses before taxes, achieving an annual profit only through tax adjustments. High fuel and service costs remain challenges, but lower finance costs—after the government took on 80% of PIA’s debt—drove the profit. Despite this, PIA’s negative equity shows its recovery is fragile.
The planned sale of PIA is Pakistan’s first major privatisation in nearly 20 years. A 2024 attempt failed due to a low offer, but five local groups—Airblue, Lucky Cement, Arif Habib, Fauji Fertiliser, and others—now show interest. Final bids are due later in 2025. Privatising loss-making state firms is central to Pakistan’s IMF deal, aiming to stabilise the economy.
Read: Pakistan Accelerates PIA Privatisation with Site Visits by Bidders
In July 2025, Britain lifted a five-year ban on Pakistani airlines, imposed after a 2020 crash and pilot licensing issues. The EU took similar steps in 2024. PIA can now reapply for profitable UK routes like London, Manchester, and Birmingham, previously costing Rs40 billion yearly in lost revenue. This could boost future earnings.
PIA’s profit marks a turning point for Pakistan’s aviation and economy. The privatisation and UK route access could strengthen the airline, but challenges like negative equity remain. This success supports the government’s economic reforms and boosts confidence in PIA’s future.
