Islamabad — The privatisation process of Pakistan International Airlines (PIA) has entered a critical and closely watched stage, as the Privatisation Commission is set to open financial bids, with three contenders left in the race to acquire a majority stake in the national flag carrier.
According to officials, the government will open sealed bids for the sale of a 75 per cent stake in PIA, marking a major step in Islamabad’s broader economic reform and privatisation agenda. The bid submission process will be followed by a public opening to ensure transparency in one of the most significant state asset transactions in recent years.
Initially, four parties were pre-qualified to participate in the bidding. However, Fauji Fertiliser Company Limited withdrew from the process, leaving three bidders in contention. These include a consortium led by Lucky Cement, another consortium headed by Arif Habib Corporation, and Air Blue (Private) Limited, each bringing varying levels of aviation, financial and management expertise.
Officials from the Privatisation Commission said that once bids are received, a reference price will be set and approved by the Cabinet Committee on Privatisation (CCoP). If the submitted bids exceed the benchmark, an open auction may follow. Otherwise, the highest bidder will be considered for approval under the established rules.
Under the proposed transaction structure, the successful bidder will be required to pay two-thirds of the bid amount within 90 days, while the remaining amount will be payable within one year. The government will initially retain a 25 per cent shareholding, with an option for the buyer to acquire the remaining stake at a later stage.
The privatisation of PIA is widely seen as a turning point for Pakistan’s aviation sector, as the airline has struggled for years with financial losses, operational inefficiencies and mounting liabilities. Authorities believe private-sector management and fresh capital could help revive PIA’s operations, modernise its fleet and improve service quality.
Government representatives have also assured that PIA employees’ jobs, pensions and benefits will be protected, with no layoffs expected for at least one year following privatisation. Existing liabilities will remain with the airline and be managed under a structured repayment plan.
As the bid opening approaches, analysts say the outcome could shape not only the future of PIA but also investor confidence in Pakistan’s privatisation programme, making it a high-stakes moment for economic reform efforts.
This story has been reported by PakTribune. All rights reserved.