ISLAMABAD (MNN); Investment firm Arif Habib emerged as the successful bidder for Pakistan International Airlines Corporation Limited (PIACL) after offering Rs135 billion in an open auction held in Islamabad, marking Pakistan’s first major privatisation in nearly two decades.
The bidding process entered an open auction phase following the submission of sealed bids by pre-qualified contenders, including Lucky Cement, private airline Airblue and the Arif Habib consortium. Airblue exited after the first round, having submitted a bid of Rs26.5bn, well below the reference price of Rs100bn.
In the initial round, Lucky Cement offered Rs101.5bn, while the Arif Habib consortium submitted a bid of Rs115bn, which became the base price for the next phase. After a short consultation break, the second round began with a minimum increment of Rs250 million.
During a brief bidding duel, Lucky Cement raised its offer to Rs134bn, but Arif Habib countered with Rs135bn, prompting Lucky Cement to withdraw and congratulate the winning bidder.
The entire auction was broadcast live on television and streamed across government social media platforms. Adviser to the Prime Minister on Privatisation Muhammad Ali announced that he would address the media following the conclusion of the process.
Speaking at the ceremony, Finance Minister Muhammad Aurangzeb praised the transparency of the bidding process and thanked the privatisation team for their efforts. He said all bidders were Pakistani entities and stressed that regardless of the outcome, Pakistan stood to benefit.
Aurangzeb expressed confidence that the new ownership would help restore PIA’s standing internationally, reduce losses, and attract both local and foreign investment. He said the participation of major business groups reflected trust in the country’s economic direction.
Earlier, Adviser Muhammad Ali said the privatisation of PIA would help open new avenues for investment. He explained that the government decided to sell at least 75 percent of its shares, with the option for the successful bidder to acquire the remaining 25 percent within 90 days.
Ali said the aim was not merely to sell the airline but to revive it through fresh investment, fleet expansion, reduction of liabilities, and improved operational efficiency. He added that expanding the fleet beyond the current 18 aircraft would only be possible through private investment.
Representatives of the bidding groups submitted sealed offers earlier in the day in a publicly televised ceremony. The reference price was approved by the Privatisation Commission Board and the Cabinet Committee on Privatisation after receiving the bids.
Prime Minister Shehbaz Sharif later thanked government officials and the Privatisation Commission, calling the sale the largest transaction in Pakistan’s history and reaffirming that the process was conducted transparently.
The auction marked Pakistan’s second attempt to privatise the national carrier after a similar effort last year collapsed due to a low offer.
Ali also revealed that unsuccessful bidders would not be allowed to participate in the airline’s future management, a condition aimed at ensuring clarity in ownership and control. He added that Fauji Fertiliser Company, which had earlier withdrawn from the process, could still join the winning group at a later stage if it chose to.
