KARACHI: Pakistan’s government received three bids during a televised auction for state-owned Pakistan International Airlines (PIA), marking a renewed effort to fulfill long-standing IMF-mandated reforms. This is the second such attempt after last year’s failed auction, which drew only one bid at a fraction of the reference price.
On live TV, representatives from bidding groups submitted sealed offers into a transparent box. The auction process includes two phases, with a second bidding round scheduled for later in the day. Prime Minister Shehbaz Sharif praised the transparency of the process and urged cabinet members to attend the follow-up event.
The bidders include:
- A consortium led by Lucky Cement Limited, involving Hub Power Holdings, Kohat Cement, and Metro Ventures.
- Arif Habib Corporation Limited’s consortium with Fatima Fertiliser, City Schools, and Lake City Holdings.
- Private airline Air Blue (Private) Ltd.
The government is willing to sell up to 100% of PIA, with any stake above 75% incurring a 15% premium. Last year’s attempt, with a minimum price set at $305 million for a 60% stake, failed when the sole bid was a $36 million offer that cited financial concerns.
PIA’s appeal has since improved, with legacy debts absorbed by the government, the airline posting its first pre-tax profit in two decades, and European and UK flight bans lifted. These developments are expected to enhance its valuation.
This sale is part of Pakistan’s broader push to privatize loss-making state entities under an IMF bailout plan aimed at reducing fiscal strain and boosting investor confidence.
