Pakistan’s government actively pushes forward the privatisation of Pakistan International Airlines (PIA). They aim to sell the national carrier by the end of 2025.
The Privatisation Commission selected four potential investors after reviewing five applications. These include two consortia and two individual companies. First, Airblue stands as a key bidder. This Pakistani airline brings industry experience.
Next, Fauji Fertiliser Company enters as another single entity. Owned by the Fauji Foundation, it qualifies as a private bidder. Additionally, one consortium features Lucky Cement, Hub Power Holdings, Kohat Cement, and Metro Ventures. These firms combine strengths in cement and energy.
Furthermore, the second consortium consists of Arif Habib Corporation, Fatima Fertiliser Company, City Schools Pvt Ltd, and Lake City Holdings Pvt Ltd. Together, they offer diverse expertise in finance and education.
PIA’s Due Diligence Phase Begins
Now, the approved bidders start buy-side due diligence. They will examine PIA’s operations closely. For example, teams assess human resources, finances, fleet details, and routes. Both domestic and international aspects receive attention.
Senior PIA officials prepare thoroughly for visits. Investors will visit the headquarters in Karachi next week. There, they receive detailed briefings. Moreover, bidders gain access to official business records. This helps them evaluate the airline fully.
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As a result, they can submit informed bids. The process ensures competitive offers. Due diligence lasts two to two-and-a-half months. Therefore, final bidding occurs in the fourth quarter of 2025. Negotiations follow soon after.
The government offers 51% to 100% of shares. They include management control. To attract buyers, officials reduced PIA’s debt. They carved out liabilities. Consequently, the minimum bid price rises. This marks Pakistan’s second privatisation attempt. The first failed last year. However, current efforts emphasise transparency. They build investor confidence.
