Six months ago, the buzz in Islamabad was that foreign airline giants were lining up to acquire a seemingly beleaguered Pakistan International Airlines (PIA). The authorities, concerned at potential fallout, seemed preoccupied with deciding which bidder to favour without upsetting their other allies. The plan appeared to be soaring at a high altitude.

But reality soon brought it back to the ground.

Despite the initial optimism, no serious interest materialized from international players. Authorities then shifted focus to courting big local conglomerates, employing high-level persuasion and even bringing the Special Investment Facilitation Council (SIFC) into the fold. Initially, several local groups showed interest in forming consortiums and hiring consultants. Some were serious contenders and began exploring potential partnerships with budget airlines since no major global airline showed enthusiasm.

However, the deal’s underlying issues emerged as they scratched the........

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