ISLAMABAD – Big day for Pakistan International Airlines (PIA) as the loss making entity witnessed historic auction. Three major players entered the bidding war in Islamabad, setting the stage for one of the country’s most closely watched financial events.
Privatization Commission had set a reserve price of 100 billion for struggling national airline. Lucky Group Consortium made first bid of Rs101.5 billion, while Arif Habib Consortium submitted an impressive initial bid of 115 billion. Air Blue, however, lagged behind with a bid of just 26.5 billion and was eliminated in the first round.
As the competition heated up, Lucky Group raised its offer to 134 billion. But Arif Habib Group ultimately triumphed, placing a staggering bid of 135 billion to acquire 75% of PIA’s shares. The bid will now be sent to the federal cabinet for formal approval before it is officially finalized.
Under the terms of the deal, 92.5% of the proceeds will go to PIA, divided into two installments, while 7.5% totaling 9.45 billion will be transferred directly to the government. Arif Habib Group is required to pay two-thirds of the price within one month, with the remaining one-third due over the next 12 months.
The privatization process will be executed in two stages. In the first stage, the successful bidder will pay approximately 67% of the bid amount, after which the shares and administrative control will be transferred to Arif Habib Group within 90 to 180 days. The remaining 33% must be paid within a year, at which point the remaining shares will be handed over. The company will also provide a Standby Letter of Credit (SBLC) and is allowed to bring in two additional partners.
Prime Minister’s Adviser on Privatization, Muhammad Ali, confirmed that PIA’s name will not be changed, and the airline is slated to receive additional investments worth 120 billion over the next three years. Currently, PIA operates 18 aircraft, but the fleet will expand to 38–40 planes within four years.
“The total value of 100% of PIA’s shares is 180 billion,” Ali said. “75% of the shares have been sold for 135 billion, leaving 45 billion worth of shares with the government.”
Arif Habib, head of the successful consortium, hailed the deal as a new dawn for Pakistan’s national carrier. “PIA is our national institution, with talented employees who understand the business inside out,” he said. “With new investment, we hope to resolve the airline’s longstanding issues. Initially, we have 18–19 planes in the fleet, 13 or 14 of which are operational. We aim to increase this to 38 in the first phase and expand further according to demand.”
He added, “We will empower PIA’s employees, utilize their skills, and create more job opportunities. With the required investment, the airline is poised for a strong performance in the coming years.”
This historic privatization deal marks a turning point in Pakistan’s aviation sector, promising a new era of growth, modernization, and operational efficiency for the country’s flagship carrier.
Arif Habib Consortium acquires 75pc of PIA in Landmark Rs135 Billion Bid
