The privatisation of Pakistan International Airlines (PIA) has reached a critical juncture. A consortium led by Arif Habib Corporation Limited has submitted the highest bid of Rs115 billion for a 75% stake in the national flag carrier.
The Privatisation Commission conducted an open, televised bidding process on Tuesday. Three bids were received and opened publicly.
- Arif Habib Consortium: Rs115 billion (includes Fatima Fertiliser, City Schools, Lake City Holdings).
- Lucky Cement Consortium: Rs. 101 billion (includes Hub Power, Kohat Cement, Metro Ventures).
- Air Blue (Private) Limited: Rs26.5 billion.
The Privatisation Commission Board reviewed the offers against a government-approved reserve price of Rs100 billion. Consequently, the Arif Habib and Lucky Cement consortia have been shortlisted for the second and final bidding phase. The process now moves to an open auction between the two shortlisted parties. This final stage will determine the ultimate buyer of the majority stake in PIA.
Read: Three Bidders Submit PIA Privatisation Bids in Live Televised Auction
Adviser to the PM on Privatisation Muhammad Ali hailed the development as a “major milestone.” He noted no large-scale privatisation has occurred in Pakistan for over two decades. The sale is a cornerstone of Prime Minister Shehbaz Sharif’s economic reform agenda. It aims to restructure loss-making state-owned enterprises (SOEs). The entire process is being broadcast live to ensure transparency.
This successful bidding round contrasts with a failed attempt in 2024. At that time, the government received only a single bid of $36 million for a 60% stake, far below its $305 million minimum price.
