Bidding for the 75% stake in the Pakistan International Airlines (PIA) commenced on Tuesday, with three consortia submitting their sealed bids to acquire control of the national flag carrier.
The authorised representative of the Lucky consortium submitted its bid first, followed by representatives of the Air Blue–Arif Habib Limited consortium, respectively.
Following the completion of the first phase, the matter will be referred to the Privatisation Commission (PC) Board and the Cabinet Committee on Privatisation (CCOP) for consideration of the minimum expected price for the divestment of PIACL.
Subject to CCOP’s approval, the second round—scheduled later in the day—will see the opening of the sealed bids, which will be broadcast live.
“Today’s PIA bidding is built on transparency, efficiency, and responsibility—supporting fairness, accountability, and public trust through a clear process,” the Privatisation Commission said on Tuesday.
The bids will be opened later at 3:30pm in the presence of the bidders.
The bidders are: 1) A consortium comprising Lucky Cement Limited, Hub Power Holdings Limited, and Kohat Cement Company Limited, 2) Metro Ventures (Private) Limited, a consortium comprising Arif Habib Corporation Limited, Fatima Fertiliser Company Limited, City Schools (Private) Limited, and 3) Lake City Holdings (Private) Limited and Air Blue (Private) Limited.
The Fauji Foundation withdrew from the bidding process to acquire PIA, leaving three bidders in the race ahead of the submission and opening of bids.
According to the Privatisation Commission, a 75% stake will be offered , in the bidding process. From this 75%, 92.5% of the proceeds will go into the company, while the remaining 7.5% will go to the government.
Under the current structure, 92.5% of proceeds are reinvested into the company
The government will retain the remaining 25% stake, with the successful bidder given the option to acquire it later. Based on the PIA business plan, the fleet of 18 aircraft is projected to double within 3–4 years, according to the commission.
“The privatisation of PIA is being undertaken as part of Prime Minister Muhammad Shehbaz Sharif’s economic reform agenda. Government of Pakistan is firmly committed to ensuring a credible, open and authentic privatisation process in accordance with all rules & regulations,” said the commission.
The government’s previous attempt to sell the national carrier collapsed last year amid weak investor interest and unresolved financial challenges.
Blue World City consortium, the only bidder, refused to match the minimum expectation of the Privatisation Commission of Rs85.03 billion and stuck to its original offer of Rs10 billion for a 60% stake in the PIA, ending the bidding process of the national flag carrier’s privatisation.
The government restarted the PIA sale process with a fresh EOI call in April this year, marking a renewed effort to offload its stake in the national carrier. It first set June 3 as the deadline for EOI submission, but later extended it till June 19.
It has been seeking to sell the debt-ridden carrier, to raise funds and reform cash-draining state-owned enterprises as envisaged under a $7 billion International Monetary Fund programme (IMF).
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