Justice Arbab Muhammad Tahir directed the respondents to submit their reports and paragraph-wise comments within two weeks. The court also approved a miscellaneous application seeking to place written arguments on record.
The privatisation process was challenged by the Peoples Unity, which has questioned the December 23, 2025 bid for PIA and the decision to declare the Arif Habib-led consortium successful. The petition also challenges approvals granted by the Cabinet Committee on Privatisation and the federal cabinet in December 2025.
The petitioners argued that the PIA Corporation Conversion Act 2016 had expired on June 30, 2025, while the government issued a gazette notification extending the law on March 6, 2026.
They claimed that actions and the bidding process carried out during the intervening period were therefore unlawful.
The petition also raised objections over the use of an outdated 2015 valuation instead of a fresh assessment, the alleged lack of approval from the Council of Common Interests, and the privatisation process being completed without consultation with PIA employees, who reportedly hold a 12 per cent stake under the Benazir Employees Stock Option Scheme.
The petitioners further alleged irregularities in the bidding process, claiming that a company that initially participated in the bidding later withdrew and subsequently joined the successful consortium, obtaining shares without participating in a fresh bid.
The Islamabad High Court adjourned further proceedings until the last week of October 2026.