The controversial privatisation of the national flag carrier, Pakistan International Airlines (PIA), has officially been challenged in The Lahore High Court (LHC) which has raised serious legal and constitutional questions about the manner of selling off the country’s state airline. The petition challenges the validity of the process that was adopted, accusing it to have side-stepped and abused mandatory constitutional nods.
Constitutional Petition Filed Against PIA Sale
Advocate Nabeel Javed Kahloon has filed the constitutional petition praying the court to declare the privatisation of PIA as illegal, and unconstitutional. The petition has sought direction to declare the agreement for sale of over 58.46 per cent stake in the airline as void and inoperative.
The lawsuit attacks the privatisation decision as a whole that was okayed in December 2025 and claims it contradicts constitutional norms and law provisions.
Key Details of the Approved Privatisation Deal
Cabinet approves Rs135bn PIA sale to Arif Habib-led consortium According to official details, the Cabinet Committee on Privatisation approved a Rs135 billion bid put forward by a group led by the Arif Habib Group, giving them 75% ownership of Pakistan International Airlines.
Government officials have claimed that:
- The winning bid was higher than the government’s reference price.
- In addition, the consortium pledged to provide more money for growing the fleet and improving efficiency.
Major Legal Objections Raised Before the Court
The petition explains more than a dozen constitutional objections:
- PIA is an inter-provincial organization in the Federal Legislative List
- Under Article 154, the approval of CCI was a must.
- The federal cabinet was not the competent legal forum which could have approved privatisation as it does not meet parliamentary and CCI’s requirement.
The plea has also claimed that the sale is against the Pakistan International Airlines Corporation (Conversion) Act, 2016, which stipulates that the airline after restructuring will remain within state-controlled entities.
Allegations of Non-Transparent Privatisation Process
Transparency The petitioner has also raised serious doubts as to the transparency of the privatisation process, mentioning among other matters:
- Misuse of official authority
- Arbitrary and non-transparent decision-making,
- Lack of public accountability
The petition challenges the government narrative that PIA is a perennial drain on public finances and contends instead that its losses stem largely from debt servicing, policy blunders and years of mismanagement rather than it being reliant on permanent subsidies.
Court Jurisdiction and Public Interest Arguments
The petitioner asserts that changes in jurisdiction of high courts would not apply to the case having constitutional violations and the public interest, instead of being a private commercial dispute.
The Petitioner has asked the court to:
- The privatisation contract should be declared null and void.
- Halt all the pending functions/consequences of PIA privatisation
- Suspend all activity associated with the previously issued EOI
What This Means for PIA’s Future
The future of Pakistan International Airlines has come under severe judicial scrutiny because of the legal challenge. The outcome of the case could have widespread repercussions for public sector privatisation, constitutional rule and state companies in Pakistan.
Up to date with breaking legal, economic and aviation news? PTBA continues to be your trusted source for accurate, timely and reader-focused coverage.