Pakistan’s economic collapse has reached a new low. The country is being forced to sell its national airline, Pakistan International Airlines (PIA), just to keep IMF money flowing.
The Desperation
Prime Minister Shehbaz Sharif announced that PIA’s bidding will take place on December 23, broadcast live across all media platforms. This isn’t Pakistan’s first attempt. They tried selling PIA last year but cancelled after receiving ZERO good offers. Nobody wanted Pakistan’s loss-making disaster of an airline. Now, with the IMF breathing down their necks, they have no choice but to try again.
The IMF Gun To Pakistan’s Head
The sale of 51-100% of PIA is a mandatory condition for Pakistan’s USD 7 billion IMF bailout package approved in September 2024. While USD 1 billion was released immediately, the remaining funds depend on Pakistan completing this privatization.
Without this sale, the money stops. Without IMF money, Pakistan’s economy would collapse completely.
Guess Who’s Buying? The Army, Of Course
Four bidders have been pre-qualified: Lucky Cement Consortium, Arif Habib Corporation Consortium, Fauji Fertiliser Company Limited, and Air Blue Limited.
Here’s where it gets interesting. Fauji Fertiliser belongs to the Fauji Foundation, one of Pakistan’s biggest business empires controlled by the military.
Army Chief Asim Munir, Pakistan’s most powerful man, isn’t directly on the Foundation’s board. But he doesn’t need to be. Munir appoints the Quartermaster General, who sits on the board, giving him complete indirect control over the Foundation’s operations.
The Military Takeover Continues
Pakistan’s military already controls much of the economy, and now the national airline is next. As the country sells assets, they’re ready to buy it cheaply.
Sharif says the process will be “fair and transparent” and restore PIA’s “lost reputation.” Lost reputation? PIA has long been banned from Europe over fake pilot licenses. Respect died years ago.
IMF Loan To Pakistan
The IMF approved a USD 7-billion loan programme for Pakistan in September 2024. While USD 1 billion was released immediately, the remaining funds are scheduled to be disbursed over three years.
