Fauji Fertiliser Company has withdrawn from the privatisation bidding for Pakistan International Airlines. The company had earlier emerged as a leading contender for a 75 percent stake in the national carrier.
The company formally notified the Privatisation Commission of its decision, even as sealed bids are due on December 23. The move came on Saturday, the final day for submitting earnest money.
A senior Privatisation Commission official confirmed that three other prequalified bidders deposited the required amount. Fauji Fertiliser did not submit the earnest money and exited the bidding round.
Officials said the withdrawal gives the company flexibility. By staying out of the bidding, Fauji Fertiliser can later join a winning consortium. Bidding rules would have blocked that option if the company had submitted a bid.
Privatisation Framework and Next Steps
The Privatisation Commission Board prequalified four bidders for the transaction. These included Fauji Fertiliser Company, Airblue, a consortium led by Lucky Cement, and another led by Arif Habib Corporation. The Arif Habib-led group later added AKD Group Holdings.
Under the privatisation plan, bidders will compete for a 75 percent stake in PIA. The successful bidder will have a 90-day option to acquire the remaining 25 percent stake. The Privatisation Commission Board will first approve the reserve price. The Cabinet Committee on Privatisation will then give final approval. Officials will open the sealed bids publicly in the presence of the media.
Read: Pakistan Targets Mid-December for Final PIA Privatisation Bidding
If bids exceed the reserve price, authorities will move to open bidding. If bids fall below the threshold, the highest bidder will receive the first right to match it. Of the proceeds from the sale, 92.5 percent will go directly into PIA. The government will receive the remaining 7.5 percent. Officials described the retained 25 percent government stake as strategically valuable.
The winning bidder must pay two-thirds of the bid amount within 90 days. The bidder can pay the remaining amount within 12 months. The government has guaranteed job security for PIA employees for 12 months. The holding company will manage pension liabilities and medical benefits. The new owners will pay current salaries and benefits.
PIA currently operates rights to 78 destinations worldwide and controls around 170 landing slots. Officials said the airline needs immediate investment and professional management to stabilise operations.
