Islamabad | Pakistan — The Arif Habib-led consortium has emerged as the successful bidder in the privatisation of Pakistan International Airlines Corporation Limited (PIACL) after offering Rs135 billion, marking Pakistan’s first completed large-scale privatisation in nearly 20 years.
The auction was conducted through a transparent, multi-stage bidding process in Islamabad and broadcast live across electronic and digital media platforms. The transaction involves the sale of 75% of PIACL’s shares, with provisions allowing the buyer to acquire the remaining stake at a later stage, subject to regulatory approvals.
Details of the Bidding Process
Three pre-qualified bidders — Arif Habib Group, Lucky Cement, and Airblue — participated in the initial sealed-bid round. Airblue exited early after submitting an offer significantly below the government’s reference price of Rs100 billion.
In the first round, Arif Habib Group submitted the highest bid of Rs115 billion, followed by Lucky Cement at Rs101.5 billion. Based on the highest initial offer, authorities set the base price for the open auction round.
The final bidding round began with a minimum increment of Rs250 million. Lucky Cement increased its offer to Rs134 billion, after which Arif Habib Group placed the winning bid of Rs135 billion, prompting the withdrawal of the competing bidder.
Transaction Structure and Investment Plan
Under the privatisation framework, the majority of the proceeds will be reinvested into the national airline to support operational restructuring, fleet expansion, and financial stabilisation. The airline currently operates a limited fleet and requires substantial capital to expand routes and improve service capacity.
The agreement allows the government to divest between 75% and 100% of PIACL shares, with the remaining stake available for purchase within a defined post-transaction period.
Exclusion of Losing Bidders
According to the transaction terms, unsuccessful bidders will not be permitted to participate in the airline’s future management or ownership structure. However, third-party investors who did not take part in the bidding process may join the new ownership consortium at a later stage, subject to approval.
Significance of the Sale
The PIA privatisation follows earlier unsuccessful attempts and comes after financial restructuring measures, including liability adjustments and incentive packages, aimed at improving the airline’s valuation and investor appeal.
Industry observers consider the successful auction a key milestone in Pakistan’s privatisation agenda and a potential catalyst for further divestment of state-owned enterprises, particularly in the transport and energy sectors.
The transaction is expected to move into regulatory and contractual finalisation phases before ownership transfer is completed.
Tags: PIA Privatization, PIA Auction, Arib Habib Bid, PIA Bidding
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Last modified: December 23, 2025
