Arif Habib Consortium Submits Highest Rs115 Billion Bid for PIA Privatization

Islamabad: The bidding process for the privatization of Pakistan International Airlines (PIA) has entered its second phase, with the Arif Habib Consortium submitting the highest bid of Rs115 billion for the national flag carrier.

According to official reports, the Lucky Cement–led consortium submitted a bid of Rs101.5 billion, while the Airblue consortium offered Rs26.5 billion. Earlier, all three pre-qualified bidders submitted their offers as part of the competitive process. Authorities stated that if bids exceed the reserve price, an open auction will be held; otherwise, the highest bidder will be given the opportunity to match the reserve price.

Under the privatization plan, the government intends to sell 75 percent of PIA’s shares. The successful bidder will be given 90 days to purchase the remaining 25 percent stake. Last year, the government assumed PIA’s liabilities amounting to Rs654 billion, a move aimed at making the airline more attractive to investors.

Officials noted that PIA’s routes to the UK and Europe have been restored, enhancing the airline’s commercial appeal. The Privatization Commission confirmed that Fauji Fertilizer Company has withdrawn from the bidding process, leaving three pre-qualified groups in the race: Airblue, the Lucky Cement–led consortium, and the Arif Habib Corporation–led consortium.

According to the Privatization Commission, 92.5 percent of the proceeds from the sale of the 75 percent stake will be reinvested in PIA, while the remaining 7.5 percent will be transferred to the government. The prospective investor will also be required to invest Rs80 billion over the next five years to stabilize and revive the airline.

The deal includes PIA’s aviation, cargo, training, and catering businesses. Job protection for existing employees for one year is part of the agreement, while pensions and post-retirement benefits will remain the responsibility of the holding company. New owners will be responsible for salaries and benefits of current employees.

Prime Minister’s Adviser on Privatization, Muhammad Ali, said the government decided to privatize between 51 and 100 percent of PIA shares, eventually opting for the sale of a 75 percent stake to ensure effective management and investment. He stressed that the government’s objective is not merely to sell PIA, but to transform it into a strong and competitive airline through professional management and sustained investment.

The head of the Privatization Commission added that successful privatization of PIA would pave the way for the privatization of other state-owned enterprises, emphasizing that the process has been conducted in a transparent and competitive manner.