Pakistan International Airlines sold as Arif Habib secures 75pc stake for Rs135bn

ISLAMABAD (Dunya News) – The privatisation of Pakistan International Airlines has entered its decisive stage after the Arif Habib consortium emerged as the successful bidder, securing a 75 percent stake in the national carrier with a final offer of Rs135billion.

The outcome was announced following the completion of the second and final phase of bidding, held under the supervision of the Privatisation Commission in Islamabad. Federal Minister for Finance Muhammad Aurangzeb, the Minister for Information, the Minister for Privatisation, senior government officials and representatives of the bidding consortia were present during the process, which was broadcast live.

The final round of bidding opened with a base price of Rs115 billion. During an intense series of incremental offers, Lucky Cement raised its bid to Rs115.5 billion, prompting Arif Habib to counter with Rs116 billion. The bidding continued with both sides repeatedly increasing their offers, as Lucky Cement moved to Rs116.75 billion and later to Rs120.25 billion. Before the close of the session, Arif Habib raised its bid to Rs121 billion and ultimately sealed the contest with a final offer of Rs135 billion, surpassing Lucky Cement’s last bid of Rs134 billion.

Earlier, in the first phase of the privatisation process, three pre-qualified bidders had submitted sealed offers for the airline. Two of them, Arif Habib and Lucky Cement, submitted bids exceeding the government’s reference price of Rs100 billion, while Air Blue (Private) Limited offered Rs26.5 billion. The opening of bids took place at around 3:30pm, after which the Privatisation Commission Board reviewed the reserve price before advancing the process.

Three consortia take part in bidding for PIA privatisation

Privatisation Commission Chairman Muhammad Ali confirmed that the reserve price had remained confidential throughout the bidding stages and required approval from both the commission’s board and the Cabinet Committee on Privatisation. He described the sale as a major milestone, noting that Pakistan had not completed a large-scale privatisation transaction in nearly two decades.

According to officials, the deal structure provides that 92.5% of the bid amount will be injected directly into PIA to support its operations and restructuring, while the remaining 7.5% will be transferred to the federal government. The successful bidder will acquire management control through the 75% shareholding, with the option to purchase the remaining stake at a later stage.

The sale marks Pakistan’s second attempt to privatise the once-flagship airline, following a failed effort last year that collapsed due to a single low offer. Since then, the government has assumed a significant portion of PIA’s legacy debt, while the airline has reported a return to pre-tax profitability after more than 20 years. The lifting of flight bans imposed by the United Kingdom and the European Union has also improved the carrier’s outlook.

Officials involved in the process believe that the induction of private capital and professional management is expected to stabilise PIA’s finances and improve operational performance, as the transaction moves towards regulatory approvals and formal transfer of ownership.