News Updates:
05:20 PM – Pakistan’s privatization process for PIA has entered a decisive phase, with two consortiums submitting bids above the government’s Rs100 billion reference price. The Arif Habib Corporation–led group topped the bidding at Rs115 billion, followed by a Lucky Cement–led consortium at Rs101.5 billion. Officials say the process reflects renewed confidence in restructuring state-owned enterprises under broader economic reforms.
Complete Story on PIA Privatization Process:
Three sealed bids have been submitted for the privatization of Pakistan International Airlines Corporation Limited (PIACL), marking a key step in the government’s second attempt to sell the loss-making national carrier.
The bids were received on Tuesday in a live, televised ceremony in Islamabad, making it one of the most transparent privatization exercises in recent years.
The offers came from a consortium led by Lucky Cement, private airline Airblue, and a consortium headed by Arif Habib Corporation.
The government is offering a 75 percent stake in Pakistan International Airlines as part of its economic reform program.
Transparent process and cabinet oversight
Representatives of the bidding groups deposited sealed envelopes into a transparent box during the public ceremony, which was broadcast live on state television and official digital platforms.
The reference price for the bids will now be reviewed by the Privatization Commission Board and then sent to the Cabinet Committee on Privatization for approval.
Adviser to the Prime Minister on Privatization Muhammad Ali said the first phase of the auction was completed successfully.
He said the reserve price would remain confidential until final approval but described the process as a major milestone after nearly two decades without large-scale privatization.
Prime Minister Shehbaz Sharif praised officials for ensuring transparency and said the PIA sale could become the largest transaction in Pakistan’s history.
He stressed that the final outcome would return to the cabinet for review before completion.
New rules and past lessons
A special condition bars unsuccessful bidders from joining PIA’s future management, a move aimed at preventing post-auction complications.
Only parties not involved in the bidding may later partner with the winning group. Fauji Fertilizer Company, which exited the race earlier, still retains the option to join later.
The current auction follows last year’s failed attempt, when the government received a single bid of $36 million against a much higher reference price.
Officials say this time stronger interest reflects improved confidence in reforms and a clearer process.
The government hopes privatization will revive the airline, reduce fiscal losses and restore PIA’s standing, while sending a positive signal to investors about Pakistan’s reform direction.
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