Web desk: The process of opening PIA bidding for the privatisation of Pakistan International Airlines (PIA) has formally begun, with the Arif Habib group winning the bidding process on Tuesday.
Who won PIA privatisation bidding?
Arif Habib group has won the PIA privatisation bidding process. It has acquired 75 per cent of PIA’s shares for Rs135 billion.
The government will receive Rs10.2 billion in cash from the PIA privatisation. The remaining proceeds will be reinvested in the airline.
This marks the first major privatisation transaction in two decades. The move is expected to save taxpayers around Rs35 billion annually.
Officials confirmed that the Arif Habib Consortium will now proceed with the investment. The aim is to revive PIA’s operations and restore its financial stability.
Speaking regarding this, Federal Minister for Finance Muhammad Aurangzeb said it is encouraging to see domestic investors participating in the PIA privatisation.
He emphasised that the government wants all state-owned institutions to stand on their own feet. Further, he noted that PIA is being privatised through a transparent process.
The minister added that it is a positive development that today’s bidders are from Pakistan and that whoever wins the bid will take charge of an institution known for its excellence.
PIA privatisation bids: Arif Habib group
A consortium led by Arif Habib Corporation Limited emerged as the top bidder with an offer of Rs115 billion. The Lucky Cement Limited–led consortium submitted the second-highest bid of Rs101.5 billion. Private carrier Air Blue (Private) Limited placed a bid of Rs26.5 billion.
These two bids exceeded the government’s reference price of Rs100 billion.
The second phase will begin after a 30-minute break. The base price in the next phase will be Rs 115 billion.
PIA bidding
Chairman of the Privatisation Commission Muhammad Ali said the privatisation of PIA is part of the government’s broader reform agenda aimed at restructuring state-owned enterprises.
He clarified that the government’s objective is not merely to sell the national airline. But to restore it to financial and operational stability.
“The aim is to put the national airline back on its feet. And make it competitive once again,” Muhammad Ali said.
He added that the privatisation of PIA is expected to attract fresh investment into the country. Which would contribute to economic growth and improve the aviation sector.
The chairman said the government wants the national airline to perform better. Similar to its earlier years, when it was regarded as a leading carrier in the region.
Muhammad Ali further confirmed that bidding for 75 per cent shares of Pakistan International Airlines is being conducted today as part of the privatisation process.
Interested parties submitted sealed bids as part of the initial auction stage.
One bid was submitted by a consortium led by Lucky Cement Limited. Alongside Hub Power Holdings Limited, Kohat Cement Company Limited, and investment firm Metro Ventures.
The second bid came from Air Blue (Private) Limited, a leading private airline operating in Pakistan.
A third offer was submitted by a consortium headed by Arif Habib Corporation Limited. This includes Fatima Fertiliser Company Limited, City Schools, and Lake City Holdings Limited.
Adviser to the Prime Minister on Privatisation Muhammad Ali confirmed that the first phase of the bidding process has been completed successfully.
