The privatisation of Pakistan International Airlines (PIA) is set to move forward with three companies participating in direct bidding, officials confirmed. Fauji Fertiliser has decided not to participate directly in the process but may join the successful consortium later.
The direct bidding process is scheduled for Tuesday, with the Arif Habib, Airblue, and Lucky consortiums confirmed as participants. Officials stated that all preparations for PIA’s privatisation have been completed, ensuring a smooth and transparent sale.
Under the current arrangement, the buyer will be exempt from paying sales tax on new aircraft. Unlike the previous attempt, the investor will not be responsible for Rs26.6 billion in dues owed to the Federal Board of Revenue or Rs7 billion payable to Pakistan Aviation. Outstanding liabilities have been resolved ahead of the bidding date.
Officials noted that between 51% and 100% of PIA’s shares will be sold, and with restored routes to the UK and Europe, the chances of securing a better price have improved. A bid bond of Rs2 billion is required from each investor, and financing of Rs80 billion must be arranged immediately after privatisation.
The Privatisation Commission emphasized that the direct bidding process will be conducted transparently, aiming to attract serious investors and ensure the long-term stability of the national airline. Previously, the lack of timely GST relief approval from the IMF had complicated the sale, but officials are confident these challenges have been resolved.
Observers expect the revised arrangements and streamlined direct bidding process to encourage competitive offers. The participation of three strong consortiums, along with the potential inclusion of Fauji Fertiliser at a later stage, is likely to enhance investor confidence and boost the final valuation of PIA.
Officials reiterated that the national airline’s privatisation represents a significant opportunity to revitalize PIA, improve its operations, and strengthen Pakistan’s aviation sector through transparent and well-structured direct bidding procedures.
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