ISLAMABAD – Arif Habib-led consortium purchased 75% of Pakistan International Airlines (PIA) for Rs135 billion, marking country’s first major real privatisation transaction in decades.
Under agreement, Pakistani government will receive Rs10.2 billion in cash, while remaining amount will be directly invested into PIA to support fleet modernization, operational restructuring, and overall enhancement of the national carrier.
Officials described deal as a key step toward strengthening airline, improving service quality, and ensuring long-term financial stability. The transaction represents landmark moment for Pakistan’s privatisation efforts, attracting significant attention from both domestic and international investors. Experts believe that under the Arif Habib consortium, PIA is poised for modernization, improved operational efficiency, and expansion of routes, potentially boosting the country’s aviation sector and economic growth.
Bidding for Pakistan International Airlines (PIA) is officially underway, with three major contenders Lucky Cement, Airblue, and Arif Habib submitting their sealed offers in a high-profile auction. The historic privatisation is said to be a second attempt to sell national carrier, with live broadcasts ensuring full transparency as the nation watches the outcome.
Lucky Cement comes up with Rs101.5 billion bid, Airblue Rs26.5billion, and Arif Habib stays ahead with Rs115billion bid.
The fate of the once-legendary flag carrier hangs in the balance as Lucky Cement, private airline Airblue, and investment giant Arif Habib formally submitted their sealed bids on Tuesday morning in a dramatic public ceremony in Islamabad.
In a scene reminiscent of a live auction, representatives of each bidding consortium arrived one by one to deposit their envelopes into a transparent ballot box, briefly struggling with the slot as cameras captured every moment for the nation, broadcast live on state television.
The reference price for PIACL will now be reviewed and ratified by the Privatisation Commission Board and the Cabinet Committee on Privatisation, setting the stage for the highly anticipated opening ceremony at 4:30 pm. Here, the envelopes will be unsealed, the bids disclosed, and the race for Pakistan’s largest-ever privatisation officially concluded.
Prime Minister Shehbaz Sharif described the moment as “potentially the largest transaction in the country’s history,” emphasizing that the process is fully transparent, with live telecasts and social media streaming to ensure accountability. “Today, the bids will come in sealed envelopes. They will compete, and the highest bidder will prevail,” the prime minister said, leaving the nation eagerly anticipating which consortium will take control of the ailing airline.
Adviser to the Prime Minister on Privatisation, Muhammad Ali, echoed the optimism, telling the media, “God willing, we will get a good bid, there will be strong investment, and we will succeed.” This marks Pakistan’s second attempt at selling the airline after last year’s televised auction collapsed when the only bid fell far below the government’s reference price, derailing what would have been the country’s first major privatisation in nearly two decades.
A unique condition of the sale ensures only the winning bidder will gain a role in the airline’s management. The two unsuccessful bidders will be excluded from any future participation, while other entities like Fauji Fertiliser Company Limited, previously in the running but withdrawn, retain the option to join the winning consortium at a later stage.
The drama surrounding the bids intensified in the days leading up to the auction, with reports of informal behind-the-scenes talks between Arif Habib and Lucky Cement over a potential stake-sharing deal. The arrangement reportedly fell apart after Lucky Cement, led by Muhammad Ali Tabba, refused to agree. Both Tabba and senior government officials confirmed that these discussions were informal and not brokered by the government. Speaking to Dawn, Tabba expressed full confidence in the integrity of the privatisation process and dismissed the proposal as a casual suggestion he chose not to pursue.
As the nation watches with bated breath, Tuesday’s proceedings could finally deliver a decisive chapter in the saga of Pakistan International Airlines, a transaction that could reshape the country’s aviation sector and mark a historic milestone in Pakistan’s privatisation journey.
Pakistan to auction 75% shares of PIA today – Who are the three bidders?
