The privatisation of Pakistan International Airlines formally entered its bidding phase on Tuesday, with three prequalified bidders submitting sealed offers to acquire a majority stake in the national flag carrier.
The bidders include a consortium led by Lucky Cement Limited, joined by Hub Power Holdings Limited, Kohat Cement Company Limited, and investment firm Metro Ventures. A second consortium, led by Arif Habib Corporation Limited, comprises Fatima Fertiliser Company Limited, City Schools, and Lake City Holdings Limited. The third bidder is Airblue.
This marks Pakistan’s second attempt to privatise PIA through a televised auction, following last year’s process that failed to meet expectations. That effort attracted a single bid of $36 million, far below the government’s reference price, and stalled what would have been the country’s first major privatisation in nearly two decades.
During the live broadcast, representatives of the bidding groups stepped forward one by one to deposit their sealed offers into a transparent ballot box. The public ceremony aired on state television underscored the government’s push for transparency in the process.
Read: Pakistan Moves Ahead With Open Bidding for 75% Privatisation of PIA
Bidding for a majority stake in PIA will unfold in two phases, with a second open-bidding session scheduled later today. Under the approved transaction structure, the government is open to selling up to 100% of the airline. Any acquisition beyond the initial 75% stake will carry a 15% premium, according to local media reports.
Last year, authorities set a minimum valuation of $305 million for a 60% stake. That process collapsed after the sole bidder, real estate developer Blue World City, declined to increase its $36 million offer, citing concerns about PIA’s financial health and operational leaks.
Officials believe the revised structure and broader investor participation this time improve the chances of a successful sale, as the government seeks fresh capital and professional management to revive the loss-making carrier.
