The Islamabad High Court has taken up a legal challenge to Pakistan International Airlines’ privatisation and issued notices to the federal government and other respondents, requiring replies within two weeks. The case centres on the sale of the national carrier to the Arif Habib Consortium and could affect the timetable for one of Pakistan’s most important state asset disposals.
People’s Unity of PIA Employees filed the petition, arguing that the bidding process held in December 2025 was unlawful and that later approvals lacked proper legal backing. The challenge also questions the valuation basis used for the sale, alleging that officials relied on an older assessment rather than an updated one.
The petition further disputes a March 2026 notification extending the PIAC Conversion Act 2016 and claims the Cabinet Committee on Privatisation and the federal cabinet approved the transaction without adequate consultation with stakeholders, including employees. The court has not ruled on the merits of the case and is expected to hear it again in the last week of October.