ISLAMABAD: The Lahore High Court’s Rawalpindi bench has dismissed a pro bono petition, challenging the ongoing privatisation of Pakistan International Airlines Corporation Limited (PIACL), ruling that the Privatisation Commission has complied with the statutory requirements under the Privatisation Commission Ordinance, 2000.
The court ruling paved the way for smooth selling of the national flag carrier.
The petition, filed by Advocate Sardar Amber Maqsood, alleged that the Privatisation Commission had failed to issue proper notices of intent under Section 23 and did not conduct a lawful valuation of PIACL’s assets under Section 24 of the Ordinance.
The petitioner also sought suspension of the process until the establishment of a Privatisation Appellate Tribunal.
Justice Jawad Hassan, who authored the detailed judgement, observed that the Privatisation Commission had advertised its intent to privatise PIACL in leading international and national newspapers, including Financial Times, China Daily, The Wall Street Journal, Dawn, and Daily Jang.
The LHC also noted that Ernst & Young Consulting LLC, Dubai, was appointed as the financial adviser to conduct independent valuation of PIA’s local and international assets in accordance with law.
The court dismissed the petition, holding that the process of privatisation met the requirements of Sections 23 and 24 of the Ordinance; the petitioner failed to provide credible material or documents to substantiate allegations of illegality; judicial review cannot be invoked to obstruct economic policy decisions of the executive, unless clear violations of law or fundamental rights are established.
On the broader question of judicial intervention in economic policy, the court stressed the need for judicial restraint, citing Supreme Court precedents which caution against interference in matters of privatisation and foreign investment.
Justice Hassan warned that frivolous petitions could derail sensitive economic reforms and undermine investor confidence.
The judgement also recorded that the bidding process for PIACL had already been cancelled, rendering the petition infructuous. Nonetheless, the court clarified that even if proceedings had continued, the Privatisation Commission’s process was legally sound and transparent.
On the petitioner’s application to summon evaluation records, the court declined, citing the Privatisation Commission (Confidentiality and Secrecy of Documents) Regulations, 2003, which classify valuation reports and due diligence documents as confidential.
Concluding the 37-page judgment, the court reaffirmed that privatisation is part of the federal government’s constitutional mandate under Article 173, aimed at reducing the fiscal burden of loss-making state-owned enterprises.
The court cautioned litigants against misusing public interest litigation to create hurdles in economic policy matters.
Published in Dawn, August 29th, 2025