Islamabad: Pakistan’s long-delayed privatisation of Pakistan International Airlines (PIA) moved into its final phase on Tuesday after three pre-qualified bidders submitted offers for a 75% stake in the national carrier.
The bids were received from Lucky Cement, private airline Airblue, and investment firm Arif Habib. Several other potential bidders, including Fauji Fertiliser, withdrew from the process before the submission deadline.
Privatisation Commission (PC) Chairman Muhammad Ali confirmed that the first phase of bidding has been completed and the process has now moved to the commission’s board, which will review the offers and determine the reference price — the minimum acceptable sale price. The reference price will remain confidential.
Once approved by the PC board, the reference price will be sent to the Cabinet Committee on Privatisation and subsequently to the federal cabinet for final ratification.
If any bid exceeds the reserve price, an open auction will be held. Otherwise, the highest bidder will be given the option to match the reference price.
Under the terms of the deal, the successful bidder will be required to acquire the remaining 25% shareholding within 90 days. The government has already assumed PIA’s liabilities amounting to Rs654 billion to make the transaction more attractive.
New investors must also commit at least Rs80 billion in fresh investment over the next five years. Of the proceeds from the sale, 92.5% will be reinvested into the airline, while 7.5% will go to the government.
The Privatisation Commission has assured that employee job security will be protected for at least one year, while pension plans and post-retirement benefits will be managed by the holding company.
Calling the move historic, Muhammad Ali said no major national asset has been privatised in Pakistan over the past two decades, adding that the sale is critical to restoring PIA’s financial health and long-term profitability.
PIA has long been targeted for privatisation due to persistent losses, a growing debt burden, an ageing fleet, and increasing competition from private and regional carriers.
