National Airline Sold for Rs135 Billion as Arif Habib Consortium Acquires 75% Stake

**Islamabad:** The privatization process of the national airline has been successfully completed, with the Arif Habib Consortium emerging as the highest bidder by offering Rs135 billion to acquire a 75 percent shareholding in Pakistan International Airlines (PIA).

According to details, the final stage of bidding was held under the supervision of the Privatization Commission Board. During the last round, the Arif Habib Consortium raised its bid from Rs121 billion to Rs135 billion, securing eligibility to purchase the airline’s majority stake.

In the initial bidding round, the Lucky Consortium offered Rs101.5 billion, Airblue bid Rs26.5 billion, while the Arif Habib Consortium submitted the highest bid of Rs115 billion. After a break, bidding resumed, during which the Lucky Consortium increased its offer to Rs120.25 billion, while the Arif Habib Consortium raised its bid to Rs121 billion. In the final round, the Lucky Cement-led consortium offered Rs134 billion but fell short by Rs1 billion, resulting in the Arif Habib Consortium being declared the successful bidder.

Officials of the Privatization Commission stated that the government planned to sell 75 percent of PIA’s shares, while the successful bidder would be given 90 days to purchase the remaining 25 percent. They added that the government had assumed PIA’s liabilities amounting to Rs654 billion last year, making the airline more attractive for privatization.

The commission further noted that PIA’s routes to the UK and other European destinations have been restored, enhancing the airline’s value. It was also confirmed that the Fauji Fertilizer Company withdrew from the bidding process.

According to the Privatization Commission, 92.5 percent of the proceeds from the sale of 75 percent shares will be invested back into PIA, while the remaining 7.5 percent will go to the government. The successful investor will be required to invest Rs80 billion over the next five years to revive the airline. The deal also includes aviation operations, cargo business, training wing, and catering services.

Employee job security clauses have been included, while pensions and post-retirement benefits will remain the responsibility of the holding company. The new owners will be responsible for salaries and benefits of existing employees, along with immediate investment and professional management to ensure financial stability.

Prime Minister’s Adviser on Privatization, Muhammad Ali, said the government’s objective was not merely to sell PIA but to transform it into a world-class airline through sustained investment and restructuring. Finance Minister Muhammad Aurangzeb congratulated the privatization team, stating that the victory of any bidder ultimately represents Pakistan’s success and expressed confidence that the new owners would modernize the national carrier.

The head of the Privatization Commission added that PIA’s privatization would pave the way for the privatization of other state-owned enterprises, emphasizing transparency and competitiveness throughout the bidding process.