News Detail
Event Title: Senator Dr. Afnan Ullah Khan, Chairman Senate Standing Committee on Privatization presiding over a meeting of the committee at Parliament House Islamabad.
Event Date: 2026-03-16
Senate Standing Committee on Privatization Reviews Privatization Matters of PIA and PMDC
A meeting of the Senate Standing Committee on Privatization was held at Parliament House under the chairmanship of Senator Afnanullah Khan. The Committee conducted a detailed review of matters related to the privatization of Pakistan Minerals Development Corporation and PIACL including their assets, financial performance, and employee welfare facilities.
MD, Engineer Asad Ahmed of the Pakistan Minerals Development Corporation briefed the Committee that the organization possesses extensive mineral reserves across the country. Coal mines spread over 17,363 acres are located in Degari, Sharigh, and Lakhra, while salt mineral reserves cover an area of 22,737 acres. In addition, soapstone reserves extend over nearly 7,000 acres. The Committee was informed that mineral exploration activities are underway in Balochistan’s Pishin and Zhob districts over an area of approximately 246,753 acres, with exploration licenses issued for a period of three years.
The Committee was further informed that the PMDC head office in Islamabad is spread over 40 kanals, while the regional office in Hayatabad covers 15 kanals and the branch office in Quetta Cantonment occupies 33 kanals. The salt reserves in Khewra span 18,192 kanals, whereas the total salt reserves across the country amount to 51,426 kanals.
During the briefing, it was informed that certain lands have been leased to private companies. For instance, 1,120 kanals of land for the Khewra project has been leased at an annual rent of PKR 500,000, while another company has been provided 56 kanals at an annual rent of PKR 113,780. Members of the Committee expressed concern that these rents are significantly lower than prevailing market values and directed the authorities to review the agreements. The Chairman of the Committee recommended revisiting lease agreements with the concerned companies and increasing rental charges accordingly.
The Committee was informed that mining land in Balochistan is leased for a period of 30 years. For each ton of coal extracted, PMDC receives PKR 2,500, whereas the production cost is approximately PKR 17,000 per ton. The organization’s annual income stands at nearly PKR 1 billion, while its total revenue before tax is approximately PKR 2.5 billion. Committee members termed the income comparatively low and emphasized the need to improve operational performance.
Secretary of the Privatization Commission of Pakistan, Usman Bajwa, briefed the Committee on the privatization process of Pakistan International Airlines. He stated that the financial close of the privatization transaction is expected by the end of April. He further informed that a consortium led by Arif Habib is in the process of identifying a new management team and Chief Executive Officer. Following approval from the Cabinet Committee, Fauji Fertilizer Company will also be included in the consortium.
The Committee was informed that the consortium has established a new company named PIA Equity Limited, which will include all shareholders, and no major obstacles remain in the privatization process. Two working groups have also been formed to report to the central steering committee overseeing the process.
Briefing the Committee on the assets of PIA Holding Company Limited, officials stated that the company’s various properties are collectively valued at approximately PKR 12 billion, while liabilities worth around PKR 180 billion have also been transferred to the holding company. A plot located in Islamabad’s New Blue Area is estimated to be worth nearly PKR 3 billion.
Officials of Pakistan International Airlines informed the Committee that the airline recorded a profit of PKR 7.3 billion during 2024, while a profit of PKR 26 billion has been reported to the Securities and Exchange Commission of Pakistan.
The meeting also discussed medical facilities provided to retired employees and pensioners of Pakistan International Airlines. Officials stated that the airline currently has approximately 16,500 pensioners, out of which 12,500 are active beneficiaries. Proposals submitted by the State Life Insurance Corporation of Pakistan for medical insurance were considered favorable and approved, while arrangements are being made with various hospitals across the country.
Chairman Committee Senator Afnanullah Khan took notice of complaints raised by retired employees and directed the relevant authorities to take immediate steps to ensure improved medical facilities for them.
During the meeting, Committee members also raised questions regarding PIA’s properties, various aspects of the privatization process, and GST concessions granted on the purchase of new aircraft. The Chairman emphasized the strategic importance of Gwadar International Airport, stating that due to its proximity to the Middle East and Central Asia, the airport could be effectively utilized as a regional aviation hub.
The meeting was attended by Senators Anwaar-ul-Haq Kakar, Bilal Ahmad Khan, and Palwasha Mohammad Zai Khan, along with former Member of the National Assembly Chaudhry Manzoor Ahmad, who participated as a special invitee. Senior officials from the Privatization Commission, the Privatization Division, and other relevant departments were also present.