ISLAMABAD: The Senate Standing Committee on Defence approved “The Pakistan International Airlines Corporation (Conversion) (Repeal) Bill, 2026”, aimed at facilitating the privatisation process while ensuring that the PIA name and brand identity remain intact.
The Senate Standing Committee on Defence met under the chairmanship of Senator Talha Mahmood at Parliament House on Monday to consider key matters relating to Pakistan International Airlines (PIA), regional air connectivity, aviation safety, and public concerns regarding airfare regulation. It took up further consideration of “The Pakistan International Airlines Corporation (Conversion) (Repeal) Bill, 2026”, which was referred by the House on May 12, 2026.
During the deliberations, officials briefed the committee on the privatisation process, associated prerequisites, timelines, and the legal framework governing the transaction. Federal Minister for Law and Justice Senator Azam Nazeer Tarar, representatives of the Privatisation Commission, including Adviser on Privatisation Muhammad Ali, and relevant officials informed the committee that the repeal bill was necessary to facilitate the privatisation process while ensuring that the PIA name and brand identity would remain intact. Following detailed consideration, the committee unanimously approved and passed “The Pakistan International Airlines Corporation (Conversion) (Repeal) Bill, 2026”.
The committee also reviewed aviation safety, operational preparedness, and regulatory oversight regarding a private airline’s proposed wet lease operations particularly for northern destinations. The secretary Defence cautioned that the proposed operation involved foreign aircraft and foreign pilots, with aircraft linked to Malta and Italy, raising concerns regarding safety oversight, maintenance monitoring, and regulatory control. He informed the committee that Gilgit and Chitral are among the most challenging airstrips in the world and require highly specialised flying expertise. He further stated that Pakistan currently lacks direct oversight of maintenance systems for some foreign-operated aircraft and warned that, in the event of any legal complications, accountability and jurisdictional issues could arise. The secretary Defence said that the private airline has to obtain a permit to commence its services. The secretary Defence reiterated that while the government welcomed investment safety and regulatory compliance could not be compromised. He described the present proposal as unique due to the operational environment and oversight considerations. “Either Malta or Italy should provide sovereign-level guarantees regarding operational accountability.
Senator Anwar-ul-Haq reaffirmed the committee’s commitment to protecting passengers and consumers. Supporting the proposal, Senator Afnan Ullah Khan observed that investment and competition should be encouraged. Defending the proposal, a former AVM of PAF, who is an adviser to the private airline while opposing the secretary Defence informed the committee “Wet lease operations aren’t inherently risky. They are IASA-certified and we will be answerable,” he told the committee and noted that approximately $ 600 million had already been invested in the project. The private airline’s advisor informed the committee that the airline sought permission for operations on 11 of its planned 14 destinations. A Joint Secretary of the Ministry of Defence informed the committee that the ‘airline concerned’ had obtained its licence last year and that its first aircraft arrived around October-November before Eid. The additional Secretary Aviation told the committee that the project was in its final stage of regulatory processing.
Senator Musadik Malik said “Standard regulations and compliance should be implemented on everyone,” he said, noting that several aircraft are already operating in Pakistan under wet lease arrangements. After extensive deliberations, Chairman Committee Senator Talha Mahmood directed the relevant authorities to facilitate approval for operations on 11 destinations while ensuring that pilots receive route-specific training from PIA for flights to Chitral, Skardu, and Gilgit. The committee also took up a Point of Public Importance raised by Senator Kamran Murtaza and Senator Danesh Kumar regarding inflated airfares on flights to Quetta.
