Islamabad, November 27, 2025: The federal government aims to conduct the final bidding for Pakistan International Airlines (PIA) by mid-December, the Privatisation Division informed the National Assembly’s Standing Committee on Privatisation on Thursday.
Briefing the committee, chaired by MNA Farooq Sattar, Privatisation Secretary said that four pre-qualified consortia are in the final stages of negotiations over commercial terms, The News reported. Discussions are ongoing with the bidders regarding the share purchase agreement and shareholders’ agreement, while reserve price approval will be sought from the federal cabinet.
Pre-bid qualification discussions have been underway for the past three days, the secretary added.
In July, the Privatisation Commission Board prequalified four bidders, Fauji Fertiliser Company Ltd, Air Blue (Pvt) Ltd, a consortium of Lucky Cement–Hub Power Holdings–Kohat Cement–Metro Ventures, and a consortium led by Arif Habib Corporation with Fatima Fertiliser, City Schools and Lake City Holdings. On November 7, the board approved AKD Group Holdings (Pvt) Ltd as an additional member of the Arif Habib-led consortium.
During the meeting, committee chairman Farooq Sattar stressed the need for transparency in the sale process and emphasised that employee rights must be safeguarded.
“The airline has to be sold, but employee protection must be guaranteed,” he said, recalling that the previous reserve price for PIA stood at Rs85 billion.
The committee recommended a minimum five-year job protection period for PIA employees, along with full safeguards for pensioners. Officials added that PIA currently operates 18 aircraft and requires an additional 35–38 planes for sustainable operations. Future owners will also be required to retain experienced staff.
For the first time, an Additional Secretary from the Power Division told lawmakers that the government is considering transferring power distribution companies (DISCOs) under long-term concession agreements, instead of complete privatisation — a model inspired by Turkey.
Under the proposed plan, private operators would assume management responsibilities for up to 25 years, enabling them to invest in infrastructure and improve service delivery.
In the first phase, Islamabad, Gujranwala and Faisalabad electric supply companies are planned for privatisation. However, the issuance of their RFPs has been delayed. Officials said the process is expected to reach an advanced stage by March.
The Power Division also briefed the committee that all three-phase meters nationwide would be replaced with Advanced Metering Infrastructure (AMI) meters by December 2026 in an effort to curb electricity theft. In the Iesco region alone, 1.5 million AMI meters have already been installed, reducing losses by 2 percent.
Addressing a 33-year delay in the privatisation of Pakistan Engineering Company (Peco), Farooq Sattar questioned why the process remained stalled. Officials said the prime minister has placed Peco under the Special Investment Facilitation Council (SIFC). The committee directed the SIFC to submit a formal progress report.
The panel also received a briefing on the privatisation status of the Roosevelt Hotel in New York.
Separately, officials from the Ministry of Industries and Production informed lawmakers that all pending dues of Utility Stores Corporation employees have now been cleared.
