The process of selling a 75 percent stake in Pakistan International Airlines Corporation (PIAC) officially moved forward on Tuesday as authorities opened first-round bids submitted by interested investors. The development marks a key milestone in the government’s long-running effort to privatize the national flag carrier.
According to official sources, the government received three bids for the majority stake, with a significant difference between the highest and lowest offers.
Arif Habib Consortium Submits Highest Offer
The Arif Habib Consortium emerged as the top bidder in the first round, offering Rs. 115 billion for the 75% stake in PIAC. The bid placed the consortium well ahead of its competitors and positioned it as the frontrunner going into the next phase of the auction.
The Lucky Consortium submitted the second-highest bid at Rs. 101.5 billion, while Air Blue offered Rs. 26.5 billion, creating a notable gap between the aviation player and the two large business groups.
Second Round to Begin the Same Day
With the opening of first-round bids completed, officials confirmed that the privatization process will now move to the second round of the auction, scheduled to begin at 5:40 p.m. The next stage is expected to further test the financial appetite and strategic intent of the competing bidders.
How the Sale Proceeds Will Be Used
Government officials revealed that 92.5 percent of the proceeds from the PIA sale will be reinvested, while the remaining 7.5 percent will go to the government. The reinvestment plan is aimed at stabilizing the airline’s operations and supporting long-term restructuring.
Additionally, the winning consortium will be allowed to induct up to two additional partners into its group after securing the stake, providing flexibility for future investment or operational expertise.
What’s at Stake
The privatization of PIA is seen as a critical test case for Pakistan’s broader state-owned enterprise reform agenda. Analysts say the strong interest shown in the first round indicates renewed confidence in strategic assets, even as challenges remain related to debt, fleet modernization, and operational efficiency.
All eyes are now on the second round, which could determine the final direction of one of Pakistan’s most high-profile privatization efforts.
