Islamabad, December 3, 2025: Prime Minister Shehbaz Sharif on Wednesday announced that the bidding process for Pakistan International Airlines (PIA) — the first major state-owned enterprise undergoing full divestment under the government’s new privatisation policy — will be held on December 23.
According to state-run media, the prime minister made the announcement during a meeting with business leaders and representatives of companies participating in the national carrier’s privatisation process.
The development comes as Islamabad moves ahead with renewed efforts to privatise the loss-making airline — a key requirement under Pakistan’s $7 billion International Monetary Fund (IMF) bailout programme.
The government’s previous attempt to privatise PIA collapsed when a $36 million offer from a real estate company fell drastically short of the $305 million floor price amid concerns related to debt levels, staffing, and the scope of operational control.
This time, the government is offering full divestment of PIA, scrapping sales tax on leased aircraft and providing limited protection against legal and tax liabilities. Officials say around 80% of the airline’s debt has already been absorbed by the state to make the offer more attractive.
Participants at Wednesday’s meeting were informed that the bidding will be broadcast live nationwide. Prime Minister Shehbaz reiterated that transparency and merit would remain the guiding principles of the process.
“The privatisation process is progressing smoothly to restore PIA’s lost identity and align the national airline with modern requirements,” he said. “God willing, PIA will once again live up to its tradition of being ‘Great People to Fly With’.”
The premier stressed that restoring PIA’s global operations would greatly benefit overseas Pakistanis, adding that modernising the airline was essential for boosting Pakistan’s tourism potential.
“To strengthen tourism, it is essential to bring the national airline in line with contemporary demands,” he remarked, expressing confidence that whichever bidder ultimately takes control will “focus all energies on restoring PIA’s reputation and driving its progress.”
Participants reportedly praised the government for adopting a “professional and transparent” approach to the privatisation effort.
Privatisation Minister Muhammad Ali told Reuters last month that the government is targeting Rs86 billion in privatisation proceeds this fiscal year. He said that during the last bidding round, 15% of proceeds from PIA’s sale were allocated to the government.
Renewed efforts have attracted interest from prominent local business groups, including Airblue, Lucky Cement, Arif Habib Group, and Fauji Fertiliser, with final bids expected later this month.
PIA recently resumed flights to the United Kingdom after the lifting of a more than five-year ban related to the pilot licence scandal. European Union flight operations were restored earlier this year following a four-year suspension.
Last month, the Privatisation Division secretary informed the National Assembly’s Standing Committee that the government aimed to complete the final bidding process by mid-December.
He said four pre-qualified consortia are currently holding final-stage negotiations on commercial terms, including share purchase and shareholders’ agreements. Pre-bid qualification talks have been underway for the past three days, while approval of the reserve price will soon be sought from the federal cabinet.
