Filed by Advocate Nabeel Javed Kahloon, the plea argues that the federal government’s December 23, 2025, approval of a Rs135 billion deal for a 75 per cent stake in the carrier was illegal and lacked required constitutional and statutory endorsements.
The petition, lodged at the LHC’s Rawalpindi bench on January 4, 2026, contends that the sale violates the Pakistan International Airlines Corporation (Conversion) Act, 2016 and bypasses mandatory approvals from the Council of Common Interests (CCI) under Article 154 of the Constitution.
Legal Challenge to PIA Privatization
The petition was filed by Nabeel Javed Kahloon and contends that the government’s sale notification was:
-
Issued without CCI approval as mandated for trans-provincial institutions under Article 154.
-
Undertaken without adequate Parliamentary scrutiny on a matter of national public interest.
The petition argues that the process was marred by “lack of transparency, arbitrary decision-making, and misuse of authority” and that “restructuring or transfer of assets should remain within government-controlled entities as per the sections 3 and 4 of the 2016 Act“.
One has to note that this is not the first time a petition has been filed in a Pakistani court alleging that the privatization of PIA is illegal. In November 2025, the Islamabad High Court (IHC) in Pakistan dismissed a case that was filed by the People’s Unity of PIA Employees, a registered Collective Bargaining Agent (CBA), that flied nine cases against the privatization of PIA.
Barrister Minaal Tariq, Counsel for the Privatisation Commission of Pakistan, said the latest judgment had brought the number of dismissed constitutional challenges to the privatisation of PIA to five out of nine. She said the rulings were particularly significant as Pakistan moves ahead with a broader privatisation programme, with legal certainty considered important for maintaining investor confidence and enabling the government to restructure state-owned enterprises.
Minaal argued that the ongoing PIA privatisation process complied with Article 173 of the Constitution and the Pakistan International Airlines Corporation (Conversion) Act, 2016. She also pointed out that the government held 96% of PIA’s shares and maintained that a competitive sale was necessary to address the airline’s financial difficulties and fulfil Pakistan’s commitments under its International Monetary Fund (IMF) programme.
How PIA Privatisation Unfolded
In May 2025 the government published an Expression of Interest (EOI) inviting bids for Pakistan International Airlines’ majority stake. The Cabinet Committee on Privatisation (CCoP) later endorsed a Rs135 billion bid by a consortium led by the Arif Habib Group for a 75 per cent stake in the flag carrier. Investors pledged additional capital (Rs80 billion – Rs125 billion) for fleet modernisation and restructuring.
According to The Associated Press, “the sale fulfills a long-standing demand by the International Monetary Fund, which has repeatedly urged Pakistan to privatize the airline as part of broader economic reforms tied to bailout programs“.
What Happens Next in PIA’s Privatization Process
The Lahore High Court is expected to hear detailed arguments on:
-
Jurisdictional competence of LHC post-2013 privatisation law amendments
-
Constitutional legitimacy of sale without CCI approval
-
Conformance with PIAC (Conversion) Act requirements
Should the court rule in favour of the petitioner, the sale could be declared null and void, and future steps stalled until full compliance with constitutional and statutory processes is demonstrated.
Conversely, an adverse ruling could bolster government privatisation policy and limit judicial interference in economic reform trajectories.
.jpg){kind=link}
.jpg){kind=link}
_JP515949.jpg){kind=link}