ISLAMABAD – Privatization of Pakistan International Airlines (PIA) is finally here as Arif Habib and Lucky Cement bidding higher than the reference price of Rs100billion. Amid privitization, there are several concerns being discussed regarding the future of country’s loss making entity.
In first round, Arif Habib consortium and Lucky Cement outbid competitors, surpassing the government-set reference price of Rs100 billion.
For the announcement of the reference price, a 30-minute pause allowed top contenders to consult internally. The second round’s base price is now set at Rs115 billion, with a minimum increment of Rs250 million, promising an intense showdown.
At the ceremony, Prime Minister’s Adviser on Privatization Muhammad Ali praised all bidders, emphasizing that PIA’s privatization could unlock new investment opportunities in Pakistan.
Representatives submitted their sealed bids into a transparent box during the public event, which was broadcast live on state TV, adding drama to the historic process. The Privatisation Commission Board and Cabinet Committee on Privatization will now finalize the reference price.
This high-stakes auction marks a critical moment for PIA’s future, potentially reviving the national carrier while attracting major investment to Pakistan’s aviation sector.
PM’s aide on Privatization, Muhammad Ali confirmed that even after privatization, PIA’s name and status as the national carrier will remain unchanged. He revealed that investors are submitting their financial offers for the airline. The bids will be opened at 3:30 pm, and the entire process will be broadcast live on TV and social media, ensuring complete transparency.
At this stage, 75% of PIA’s shares will be privatized, with winning bidder given the option to buy the remaining 25% within 90 days. He emphasised that 92.5% of proceeds from sale will be reinvested into PIA to improve operations, upgrade aircraft, and cover essential expenses, while only 7.5% will go to the national treasury.
Lucky Cement Group-led consortium, including Hub Power Holding, Kohat Cement, and Metro Ventures. Second consortium featuring Arif Habib Group, Fatima Fertilizer Company, City Schools, and Lake City Holding. Air Blue (Private) Limited.
Muhammad Ali reassured that all PIA employees will retain their jobs for at least one year, and the new owners will have no authority to terminate staff during this period. Currently, all assets are managed by a holding company to protect salaries and benefits.
The government attempts to privatize PIA have faced hurdles. The first serious attempt in October 2024 failed due to low bids, and a second attempt in 2025 stalled at the pre-qualification stage. This current, third attempt is the government’s final push.
Experts claim that successful privatization could not only revive the national air carrier in its original form but also set a positive precedent for the privatization of other state institutions. The experience and vision of the winning investor in aviation will be crucial for future of the airline.
This could be the historic turning point for Pakistan’s national airline, keeping its legacy alive while injecting much-needed investment and modernization.
PIA Privatisation Bidding Underway: Arif Habib Leads Rs115 Billion Offer
