ISLAMABAD: The Islamabad High Court has issued notices to the federal government and other respondents in a petition challenging the privatisation of Pakistan International Airlines, directing them to submit reports and para-wise comments within two weeks.
Justice Arbab Muhammad Tahir issued the written order after hearing the case and also allowed a miscellaneous application seeking to place written arguments on the record.
The petition has been filed by Peoples Unity, which has challenged the December 23, 2025 bidding process and the decision to declare the Arif Habib Consortium as the successful bidder. The petition also questions approvals granted by the Cabinet Committee on Privatisation and the federal cabinet in December 2025.
According to the petitioner, the PIA Corporation Conversion Act, 2016 had expired on June 30, 2025, while the federal government issued a gazette notification extending its validity only on March 6, 2026. It argued that all actions taken during the intervening period, including the bidding process, were therefore unlawful.
The petition further alleged that the privatisation process relied on an outdated 2015 valuation instead of a fresh assessment and that the matter was not placed before the Council of Common Interests for approval.
It also maintained that PIA employees hold a 12 percent stake in the airline under the Benazir Employees Stock Option Scheme and that the privatisation process was completed without consulting them as key stakeholders.
The petitioner argued that the government had no authority to transfer shares owned by employees and alleged that the mandatory notice required under Section 23 of the Privatisation Commission Ordinance, 2002 was not published.
Questions were also raised over the bidding procedure involving a company that initially participated in the process but later withdrew. The petition claimed that the company subsequently joined the successful consortium and obtained shares without taking part in the final bidding process, undermining competition and transparency.
The petitioner also challenged the legality of the agreement between the consortium and the company that had withdrawn from the bidding process.
The Islamabad High Court adjourned further hearing of the case until the last week of October 2026.