PIA privatization bill approved, Wet lease flights face safety scrutiny

Islamabad: In a major session at the National Assembly, the Senate Standing Committee on Defence, chaired by Senator Talha Mahmood, scrutinized Pakistan International Airlines (PIA) operations, regional air connectivity, and proposed wet lease arrangements, raising concerns over safety, oversight, and consumer protection.

The committee first reviewed the Pakistan International Airlines Corporation (Conversion) (Repeal) Bill, 2026, referred by the House on May 12, 2026. Federal Minister for Law and Justice Senator Azam Nazeer Tarar, along with Privatisation Commission Adviser Muhammad Ali, briefed the committee on the privatization process, timelines, and legal framework. Officials stressed that the repeal bill was essential to facilitate privatization while ensuring the PIA brand and name remain intact. Following deliberations, the committee unanimously approved the repeal bill, marking a significant step toward restructuring the national carrier.

The session quickly turned controversial when the committee discussed wet lease operations for northern air routes, including Gilgit, Chitral, and Skardu. Defence Ministry officials raised concerns over safety, noting that foreign aircraft and pilots linked to Malta and Italy would operate on some of the most challenging airstrips globally. The Secretary Defence highlighted that airlines such as Air Sial had historically trained pilots for a year before flying these routes due to adverse weather conditions and difficult terrain. He cautioned that lack of direct oversight of foreign-operated aircraft could raise accountability and jurisdictional issues in case of legal complications.

“Foreign crew is good, but home field experience is something else,” the Secretary remarked, emphasizing the need for route-specific training for northern destinations. Senator Talha Mahmood underscored that only one aircraft currently operates regularly to Gilgit, often reduced to a single weekly flight, leaving remote regions reliant on 18-hour road journeys in the absence of dependable air connectivity.

Senator Afnan Ullah Khan stressed the importance of facilitating both domestic and foreign investment in aviation and tourism, while an Air Vice Marshal advisor to South Air defended wet lease operations, citing international certifications (IASA) and investments of approximately USD 600 million already made in the project. He argued that historically, aviation accidents involved PIA operated aircraft, not wet lease operators.

The committee also addressed a Point of Public Importance regarding high domestic airfares to Quetta, raised by Senators Kamran Murtaza and Danesh Kumar. Concerns were voiced over inflated ticket prices, lack of competition, and regulatory gaps. Secretary Defence clarified that fare distortions often emerge where adequate oversight is absent. Lawmakers stressed the need for stronger fare regulation, enhanced market competition, and affordable access to air travel, particularly in underserved regions of Balochistan and northern Pakistan.

After extensive deliberation, Chairman Senator Talha Mahmood directed authorities to facilitate approval for South Air operations on 11 destinations, ensuring pilots receive PIA led, route specific training for northern operations. Committee members emphasized that investment and competition should be encouraged without compromising safety standards. Senator Musadik Malik urged uniform regulations and compliance across the aviation industry, noting that several aircraft already operate under wet lease arrangements in Pakistan.

The meeting highlighted tensions between rapid privatization and regulatory oversight, illustrating the challenges of balancing investment, consumer protection, and aviation safety in Pakistan’s most difficult operational environments.