The government on Tuesday launched open bidding for the privatisation of a 75% stake in Pakistan International Airlines Corporation Limited, marking a critical step in efforts to revive the country’s flag carrier through private investment and professional management.
According to the Privatisation Commission, prequalified bidders submitted sealed bids at 10:30 am. The commission is scheduled to open the bids at 3:30 pm during a formal ceremony attended by representatives of the competing groups.
How the PIA Bidding Process Will Work
After receiving the bids, the Privatisation Commission Board and the Cabinet Committee on Privatisation will approve the reference price. Authorities will announce both the bids and the reference price as part of the process, which will conclude in line with agreed terms and conditions.
Officials confirmed that television channels and digital platforms will broadcast the entire bidding process live. Adviser to the Prime Minister on Privatisation Muhammad Ali is expected to brief the media after the process concludes.
PIA’s Prequalified Bidders in the Race
Three bidders submitted the required earnest money and qualified for the open bidding. These include Airblue, a consortium led by Lucky Cement, Hub Power Holdings, Kohat Cement, and Metro Ventures; and a consortium led by Arif Habib Corporation, with Fatima Fertiliser, City Schools, and Lake City Holdings.
Read: Fauji Fertiliser Withdraws From PIA Privatisation Bidding
Meanwhile, Fauji Fertiliser Company Limited, earlier seen as a strong contender, formally withdrew from the bidding last week. Officials said the withdrawal allows the company to join later a winning consortium, an option that bidding rules would not have permitted had it submitted a bid.
PIA’s Financial Structure and Employee Protection
Under the transaction framework, 92.5% of the amount paid for the 75% stake will be reinvested directly in PIA, while 7.5% will be allocated to the government. The state will retain a 25% stake, which bidders may acquire later or leave with the government.
The winning bidder must pay two-thirds of the bid amount within 90 days. The remaining one-third can be paid within 12 months. The government has also guaranteed 12 months of job security for PIA employees. The holding company will manage pension liabilities, medical benefits and post-retirement obligations, while the new owners will cover current salaries and benefits.
PIA currently operates rights to 78 destinations and holds around 170 landing slots worldwide. Officials said the airline urgently needs a capital injection and professional oversight to restore profitability and operational efficiency.
A previous privatisation attempt failed after a $36 million offer fell well below the government’s $305 million floor price, amid concerns about debt, staffing levels, and limited investor control. This time, the government has offered full divestment, removed the sales tax on leased aircraft, provided limited protection against legal and tax claims, and transferred approximately 80% of PIA’s debt to the state.
