PIA Finally Privatised as Arif Habib Consortium Wins Bid

Pakistan International Airlines (PIA) has finally been privatised after Arif Habib Consortium won the decisive auction.

The consortium emerged victorious with a final bid of PKR 135 billion for a seventy-five percent stake.

Lucky Cement Consortium followed closely behind, submitting the second-highest offer of Rs134 billion during the decisive round.

The auction marked the conclusion of a long-awaited effort to privatise the national carrier amid persistent financial challenges.

During the initial bidding round, two consortia exceeded the government-approved reference price of PKR 100 billion comfortably.

Lucky Cement had initially offered slightly above PKR 101 billion, while Airblue submitted a comparatively lower bid publicly.

Arif Habib Consortium, however, maintained its lead from the beginning, eventually qualifying for the final bidding stage.

The second round intensified quickly as both leading bidders repeatedly increased their offers in rapid succession.

Lucky Cement raised its bid to PKR 125 billion, prompting an immediate counter of PKR 126 billion from Arif Habib Consortium.

What followed was a tense exchange, with both sides incrementally lifting bids amid growing anticipation.

Lucky Cement advanced to PKR 130 billion, only to be overtaken by Arif Habib with an offer of PKR 131 billion.

The final stretch saw Lucky Cement reach PKR 134 billion before Arif Habib sealed victory at PKR 135 billion.

Upon conclusion, officials formally declared Arif Habib Consortium the successful bidder for Pakistan International Airlines.

Prime Minister Muhammad Shahbaz Sharif welcomed the outcome, describing it as a defining moment for economic reform.

He stated the privatisation fulfilled a pledge to reduce the state burden of loss-making enterprises.

According to the prime minister, the transparent bidding process would strengthen investor confidence and economic stability.

He added that collaboration with the private sector remains central to national development and public welfare goals.

PIA has long faced criticism over inefficiency, rising losses, and shrinking government support during fiscal pressures.

Before delisting, the airline reported losses exceeding 400 million dollars during the 2022 financial year.

A previous attempt to privatise the airline collapsed after attracting only one low valuation bid.

This renewed effort involved revised transaction structures designed to attract serious and competitive investors.

Prime Minister Adviser Muhammad Ali said the objective extends beyond revenue collection toward long-term airline revival.

He explained the airline requires sustained investment to regain competitiveness and operational credibility.

Under the new framework, two-thirds of the payment will be made upfront by the buyer.

The remaining amount will follow later under secured safeguards approved by regulatory authorities.

The investor must also commit PKR 80 billion in fresh investment over the next five years.

Of the proceeds, most funds will be reinvested directly into the airline, strengthening operations and infrastructure.

The government has already assumed PIA liabilities worth PKR 654 billion to make the deal viable.

Employee job security will remain protected for one year following the transfer of ownership.

Pension obligations and post-retirement benefits will continue to be managed through a holding company.

The government insists this move is essential to restoring profitability and global confidence in PIA.