- Minister describes PIA’s direct international flights as a key commercial asset.
- Jam Kamal says improving service quality is essential to restoring public confidence.
- Kamal and the UK envoy discuss long-term strategies to modernise PIA’s fleet.
The federal government is exploring possible aircraft leasing and fleet upgrade agreements with Airbus and Rolls-Royce for Pakistan International Airlines (PIA) after its privatisation, according to the commerce ministry.
The move comes after Pakistan sought potential US financing for Boeing aircraft and engines last month. As reported by The News, the developments indicate that the government is considering partnerships with multiple international suppliers and a range of financing options to support the rebuilding and modernisation of PIA’s fleet.
The latest proposals were discussed at a meeting in Islamabad between Commerce Minister Jam Kamal Khan and British High Commissioner Jane Marriott, according to an official statement issued by the commerce ministry.
Both sides explored potential arrangements for Airbus aircraft and Rolls-Royce engines, including leasing solutions to address PIA’s immediate operational needs and longer-term strategies for upgrading its fleet.
“PIA’s direct international flights are an important commercial asset,” Khan said, as quoted in the ministry’s statement. He emphasised that rebuilding passenger confidence would depend on better service standards, dependable flight operations and the modernisation of the airline’s aircraft.
The talks follow a meeting last month in New York between Finance Minister Muhammad Aurangzeb and US Export-Import Bank Chairman John Jovanovich, where they discussed possible financing arrangements for PIA’s aircraft and engines.
At the meeting, Aurangzeb highlighted the airline’s interest in acquiring Boeing aircraft, particularly 787 Dreamliners, and requested assistance in arranging a financing package that could cover advance payments made before aircraft delivery.
The government later clarified that it would not buy aircraft for the privatised airline or offer a sovereign guarantee or a loan financed by taxpayers to fund such purchases.
It explained that its responsibility would be limited to helping PIA access international financing, technology and suppliers, while the commercial risks would remain with the airline and its investors.
PIA was privatised in December 2025 after a consortium led by Arif Habib secured a 75 percent stake for Rs135 billion ($486 million). The transaction formed part of Pakistan’s wider initiative to ease the financial pressure caused by loss-making state-owned enterprises. Management control was subsequently handed over to the consortium in June 2026.
Upgrading its aircraft fleet remains a major priority for PIA as it works to expand international services, strengthen operational reliability and restore passenger trust.
The aviation-related discussions were held as part of a wider meeting focused on strengthening trade and investment ties between Pakistan and the United Kingdom. Both sides also considered potential cooperation in healthcare, information technology, agriculture, livestock, financial services and minerals.
Khan also pointed to opportunities for British investment and technological collaboration in Pakistan’s livestock sector, particularly in boosting meat production, increasing value addition and expanding exports.
The discussions also covered ways to strengthen international branding and improve access to overseas markets for Pakistani goods, including textiles, surgical instruments, food products, pink salt and olive oil.
