ISLAMABAD: A consortium headed by Arif Habib Corporation Limited has submitted the highest bid of Rs135 billion for the purchase of a 75% stake in Pakistan International Airlines (PIA), officials confirmed on Tuesday.
The government received three bids as part of the ongoing privatization of the national airline. The Privatisation Commission conducted an open and televised bidding process for the sale of 75% of PIA’s shares, after which sealed bids were publicly opened.
According to the results, the bid from the Arif Habib-led consortium, which includes Fatima Fertiliser, City Schools, and Lake City Holdings, was the highest. A competing bid from Lucky Cement Limited’s consortium, comprising Hub Power Holdings, Kohat Cement, and Metro Ventures, offered Rs101 billion. Meanwhile, Air Blue (Private) Limited, a domestic airline, submitted the lowest bid of Rs26.5 billion.
The submitted bids were reviewed by the Privatisation Commission Board, which considered the reserve price set at Rs100 billion by the Cabinet Committee. The second phase of the bidding process is now underway, with Arif Habib Group and Lucky Cement Group shortlisted for the next round. In this stage, both parties will participate in an open auction to determine the final buyer for the airline.
Prime Minister’s Adviser on Privatisation Muhammad Ali described the development as a significant milestone, noting that “no major privatization has occurred in the last 20 years.” The privatization of PIA aligns with Prime Minister Shehbaz Sharif’s economic reform agenda, focusing on restructuring loss-making state enterprises. To promote transparency, the entire process is being broadcast live on television and streamed on government social media channels.
Officials emphasize that the goal of privatization is to revitalise PIA and restore its competitiveness. Last year, the government set a minimum price of $305 million for a 60% stake in PIA but received only a single bid of $36 million from Blue World City, which later withdrew due to financial and operational concerns.
