PIA Shares See Record Sharp Increase

KARACHI: The Class B shares of Pakistan International Airlines (PIA) Holding Company have experienced a record-breaking surge, with prices soaring past Rs 22,000 per share, according to ARY News. This represents an increase of over Rs 18,000 within a single month—a sharp and unusual rise that has raised eyebrows in financial circles.

The sudden spike in share value has prompted intervention from regulatory bodies. The Pakistan Stock Exchange (PSX) immediately issued a notice to PIA, seeking clarification over the unusual trading activity. In response, the airline’s management stated that they were unaware of any material developments or corporate disclosures that could justify the dramatic increase in share price.

Meanwhile, the Securities and Exchange Commission of Pakistan (SECP) has also launched an inquiry to determine whether the price movement is linked to speculative trading, insider information, or market manipulation.

Privatization Process Gaining Momentum

The sharp rise in PIA’s share price coincides with the government’s ongoing efforts to privatize the loss-making national airline. In April 2025, the Privatization Commission released a second call for Expressions of Interest (EOIs), inviting prospective investors to participate in the bidding process.

As per official guidelines:

• The government aims to sell between 51% and 100% ownership in PIA.
• Interested parties must submit EOIs by June 3, 2025, along with a non-refundable processing fee of Rs 1.4 million.
• This marks a crucial phase in the airline’s long-awaited restructuring plan.

The privatization process was initiated by recommendations from the IMF and other economic reform bodies to reduce fiscal burden and improve transparency in state-owned enterprises.

Background on Class B Shares

PIA’s Class B shares are non-tradable on the open market but are often used in internal shareholding structures, particularly within the newly formed PIA Holding Company, which was created during the bifurcation of PIA’s core operations and liabilities. The market reaction to these shares, despite their limited traceability, reflects growing speculation over PIA’s valuation in the lead-up to privatization.

Regulatory Concerns & Next Steps

With the SECP and PSX now actively monitoring the situation, further scrutiny of trading patterns is expected. Financial analysts suggest that if no valid reason for the price spike is found, regulators may consider disciplinary action or issue warnings against entities involved in abnormal trading activity.

Conclusion

While the share price surge may signal investor optimism regarding PIA’s future under private ownership, regulators are closely watching for signs of speculative behavior. As the June 3 deadline for privatization bids approaches, transparency and due diligence will be crucial to ensuring a fair and competitive bidding process.