Air Vice Marshal (AVM) Muhammad Amir Hayat has been reappointed as the Acting Chief Executive Officer (CEO) of Pakistan International Airlines Corporation Limited (PIACL). The decision, approved by Prime Minister Shehbaz Sharif, comes as an interim arrangement until a permanent CEO is appointed. This move highlights the ongoing efforts to stabilize Pakistan’s national flag carrier amid significant operational and financial challenges.
The decision was formalized by the board of directors of PIACL on December 12, 2024, and took immediate effect. This follows a prior notification that saw AVM Hayat’s role as CEO of PIA conclude on December 9, 2024. His initial appointment as CEO, which began a year ago, was part of a broader strategy by the then-government to address the airline’s persistent financial losses while paving the way for its privatization.
Privatization Challenges and Financial Burdens
PIA has struggled under the weight of mounting losses, with accumulated arrears running into hundreds of billions of rupees. The airline’s privatization has been a focal point of Pakistan’s economic reform agenda, driven by recommendations from the International Monetary Fund (IMF). As part of a 37-month, $7-billion bailout agreement with the IMF, the government had proposed selling a stake of between 51% and 100% in the debt-ridden airline to attract private investment and improve operational efficiency.
However, privatization efforts have faced significant hurdles. The first phase of bidding attracted limited interest, with only the Blue World Consortium submitting an offer. Their bid for a 60% stake in PIA was significantly lower than expectations, offering just Rs. 10 billion against the Privatization Commission’s minimum target of Rs. 85 billion. This bid was subsequently rejected by the government, which has now opted to initiate a fresh round of the privatization process.
A Complex Path Ahead
The reappointment of AVM Muhammad Amir Hayat underscores the urgency of stabilizing PIA’s management during this critical period. His leadership is seen as a bridge while the government navigates the challenges of privatizing one of the country’s most financially troubled state-owned enterprises (SOEs).
The privatization of PIA remains a sensitive issue in Islamabad, with stakeholders keenly aware of the airline’s strategic importance and the potential implications for its workforce and operational integrity. The government’s next steps will likely involve reevaluating the airline’s valuation, attracting more competitive bids, and addressing lingering concerns among prospective investors.
As Pakistan enters 2025, the fate of PIA stands as a test case for the broader reform agenda tied to IMF stipulations. The outcome of these efforts will not only determine the future of the national carrier but will also signal Pakistan’s commitment to addressing the structural inefficiencies that have long plagued its SOEs.
In the meantime, AVM Hayat’s interim leadership will play a crucial role in ensuring continuity and steering the airline through this transitional phase.