Islamabad, December 23, 2025: The Arif Habib Corporation Limited–led consortium emerged as the highest bidder for Pakistan International Airlines (PIA) after submitting an offer of Rs121 billion, narrowly outbidding the Lucky Cement Limited–led consortium, which placed a bid of Rs120.25 billion, during the second round of the open-bidding process held on Tuesday.
The Arif Habib-led group raised its offer from Rs115 billion to Rs121 billion after the Lucky Cement consortium increased its earlier bid of Rs101.5 billion to Rs120.25 billion in the second round. The bidding took place as part of the government’s second televised attempt to privatise the national flag carrier, with bids opened publicly by a Privatisation Commission official.
Addressing the ceremony, Finance Minister Muhammad Aurangzeb said that regardless of which bidder ultimately succeeds, the real winner would be Pakistan. He described the participation of exclusively Pakistani bidders as a “major and encouraging development” for the country’s investment climate. “All the bidders today are from Pakistan. The best and biggest business groups are competing for the national airline, which reflects growing confidence in the economy,” he said.
Aurangzeb added that the transparent bidding process would indirectly promote foreign investment by strengthening investor confidence and demonstrating the government’s commitment to economic reforms. He emphasized that the government wants state-owned institutions to become financially self-sustaining and termed the strong participation of domestic investors a positive sign. The finance minister also congratulated Adviser to the Prime Minister on Privatisation Muhammad Ali and his team for conducting what he called a professional and credible process.
Speaking ahead of the open bidding, Adviser Muhammad Ali said the privatisation of PIA was a key component of the government’s reform agenda. “The government’s aim is not merely to sell the national airline, but to make it stand on its own feet,” he said, adding that privatisation would help revive PIA’s past glory and attract much-needed investment. He explained that the government had decided to sell a 75% stake in the airline, although bidders were allowed to express interest in acquiring between 51% and 100%.
Ali said that 92.5% of the proceeds from the sale would be reinvested into PIA, while only 7.5% would go to the government. Bidders would be allowed to make payments in phases, with two-thirds of the bid amount payable upfront and the remaining one-third within 12 months. He also noted that bidders could include up to two additional parties after the completion of the bidding process.
The first round of bidding featured three contenders for a majority stake in PIA. These included a consortium led by Lucky Cement Limited, comprising Hub Power Holdings Limited, Kohat Cement Company Limited, and Metro Ventures; a second consortium led by Arif Habib Corporation Limited, including Fatima Fertiliser Company Limited, City Schools, and Lake City Holdings Limited; and private airline Air Blue (Private) Limited. As two bids exceeded the government’s reference price of Rs100 billion, the final winner will be determined through an open auction mechanism, allowing the lower bidder an opportunity to match or exceed the highest offer.
The ceremony began at 4:30 pm and was broadcast live on state television, with representatives of the bidding groups depositing sealed bids into a transparent box. Prime Minister Shehbaz Sharif welcomed the transparent process and urged cabinet members to attend the subsequent bidding ceremony later in the day.
Earlier, Fauji Fertiliser Company Limited, considered a strong contender for the 75% stake, formally withdrew from the bidding process. Under the deal structure, the government will retain a 25% stake in PIA, which bidders may choose to acquire at a later stage. The government has also assured 12 months of job security for PIA employees, while pension liabilities and post-retirement benefits will be managed by the holding company.
PIA currently operates rights to 78 destinations and holds around 170 international landing slots. Officials said the airline urgently requires fresh investment and professional management. The carrier’s prospects have improved significantly after the government assumed most of its legacy debt, PIA posted its first pre-tax profit in two decades, and aviation bans imposed by the UK and the European Union were lifted.
The privatisation of PIA is part of a broader reform and privatisation programme under Pakistan’s IMF-supported bailout, which also includes plans to offload stakes in state-owned banks, power distribution companies, and other loss-making enterprises to reduce fiscal pressure and restore investor confidence.
