In 2025, Pakistan International Airlines is undergoing a transformation. And while a return to profitability or the resumption of European flight routes might sound like routine milestones, what’s unfolding at PIA is anything but ordinary. It’s the story of a legacy institution being repositioned not just for better performance, but for a renewed purpose. And in many ways, it’s one of the clearest indicators that Pakistan’s government is serious about reform.
After 21 Years, PIA Turns a Profit
For the first time in over two decades, PIA has posted an annual profit. According to Dawn News, the national carrier closed FY2024 with a net profit of 2.26 billion PKR and an operational profit of 3.9 billion PKR, achieving an operating margin of over 12% on par with some of the world’s leading airlines. This is more than just a financial turnaround; it reflects stronger fiscal discipline, operational reforms, and a determined push to make Pakistan’s state enterprises competitive once again.
Flights to Europe Are Back
Perhaps even more significant is the return of PIA’s flights to Europe. After a four-year ban imposed by the European Union Aviation Safety Agency (EASA) following safety violations in 2020, Pakistan’s national carrier is now back in European skies. The ban had deeply hurt the airline’s international standing, forcing it to reroute services and limiting overseas passenger options.
Its removal shows progress on aviation safety standards and regulatory alignment with international bodies, both key to regaining global investor confidence. It’s not just a win for the airline; it’s a reputational boost for the country.
Privatisation, Reimagined
According to a detailed report by Reuters, the third development may well be the most pivotal: PIA is officially back on the market. Key structural issues have been addressed: legacy debt has been shifted off the airline’s balance sheet, pre-qualification criteria are being revised, and global advisory firm Jones Lang LaSalle (JLL) has been appointed to explore asset strategies, including the PIA-owned Roosevelt Hotel in New York.
This isn’t just administrative housekeeping. The privatisation relaunch is a core component of Pakistan’s $7 billion IMF programme, which explicitly calls for reforming and offloading loss-making state-owned enterprises (SOEs). PIA’s transformation, from a debt-ridden national liability to a profit-making, investor-ready asset, is being positioned as a flagship case for this reform agenda.
The new Expression of Interest (EoI) deadline has been set for June 19, with the government aiming to complete the transaction before the end of the year. With 51–100% equity on offer, the sale is no longer just about trimming losses. It’s about repositioning PIA as a viable player in global aviation, capable of standing on its own and serving as a model for broader privatisation efforts that aim to stabilise Pakistan’s economy and rebuild market confidence.
What This Means for the Economy
So why does this matter? Because PIA is more than just an airline. It’s a bellwether for how Pakistan handles reform, particularly of state-owned enterprises that have historically drained the treasury. Its turnaround hints at something larger: a government willing to make tough decisions, take on institutional inefficiencies, and engage foreign capital with transparency and intent.
It also reflects deeper compliance with IMF conditionalities and long-standing investor concerns. Whether you’re a foreign portfolio manager, a diaspora entrepreneur, or a policy observer, the message is clear: Pakistan isn’t just talking about reform. It’s beginning to execute.
The View from One Homes
At One Homes, we track developments like these because they change the investment landscape. Every step forward in regulation, infrastructure, or enterprise reform shapes the environment in which we build. It impacts not just aviation or macroeconomic stats, but also long-term confidence in Pakistan as a destination for capital, talent, and global engagement.
The PIA story isn’t just a comeback. It’s a signal that Pakistan, quietly but deliberately, is putting its house in order. And that’s a signal investors should pay close attention to.
