ISLAMABAD: The Arif Habib Corporation Limited–led consortium has acquired a majority stake in Pakistan International Airlines (PIA) after submitting the highest bid of Rs135 billion in the privatisation process of the national flag carrier.
The consortium raised its offer from Rs115 billion to Rs135 billion in the second round of open bidding after the Lucky Cement Limited–led consortium increased its bid from Rs101.5 billion to Rs134 billion. Two bids exceeded the government’s reference price of Rs100 billion, leading to an open auction to determine the winner.
Finance Minister Muhammad Aurangzeb said that the victory belongs to Pakistan, highlighting that all participating bidders were Pakistani companies. “This is a major development for our investment climate,” he said, emphasizing growing investor confidence and Pakistan’s commitment to transparent economic reforms.
Adviser to the Prime Minister on Privatisation, Muhammad Ali, said the government’s goal was not just to sell PIA but to make it financially sustainable. He said 75% of the airline’s shares were sold, with 92.5% of the bid amount to be reinvested into the airline and 7.5% allocated to the government.
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Under the payment terms, the winning consortium will pay two-thirds of the amount within 90 days and the remaining one-third within 12 months. The government has also assured one year of job security for PIA employees, while pension and post-retirement liabilities will be managed by the holding company.
The Arif Habib-led consortium includes Fatima Fertiliser Company Limited, City Schools, and Lake City Holdings Limited. Other bidders were a consortium led by Lucky Cement Limited and private airline Air Blue.
Officials said the privatisation is a key step in reviving PIA, which has posted its first pre-tax profit in two decades and regained access to European and UK routes after the lifting of a five-year ban.
The first televised open-bidding ceremony took place in Islamabad, marking the country’s second attempt to privatise the national airline after last year’s failed auction, which received only one bid below the government’s reference price.
Officials said the privatisation will bring new investment, professional management, and improved infrastructure, strengthening PIA’s competitiveness in domestic and international markets.
The sale is part of the government’s broader IMF-backed economic reform agenda aimed at reducing fiscal losses and restoring investor confidence.
