Islamabad – The bidding process for PIA privatisation has officially begun, marking a major step in Pakistan’s economic reform agenda. Three pre-qualified bidders have submitted offers for a 75% stake in the national airline.
The bidders include Airblue, the Arif Habib Group, and a consortium led by Lucky Cement. Transaction Manager Abdul Basit confirmed that all shortlisted bidders were granted access to the airline’s data, and bids are currently being verified.
The process is being conducted in two rounds. In the first round, sealed bids were submitted, while the second session will open the bids publicly. The sealed bid box was displayed in front of cameras to ensure transparency.
Officials said the Lucky Cement Consortium submitted the first bid, followed by Airblue and the Arif Habib Group. The bids will be formally opened at 3:30pm in Islamabad.
Advisor to the Prime Minister on Privatization Muhammad Ali expressed optimism about the PIA privatisation process. He called it one of Pakistan’s largest economic undertakings in recent years and highlighted its potential to attract meaningful investment into the struggling airline.
The government expects the bids to generate over Rs100 billion. Most of the proceeds will be directed toward rehabilitating PIA, expanding its fleet, and improving operational capacity. Under a five-year business plan, the airline aims to grow its fleet from 18 aircraft to 38 and increase passenger numbers from four million to seven million annually.
To encourage investment, the government is offering an 18% GST exemption on leasing new aircraft. Officials have also assured PIA employees job security for one year after privatization. The government has absorbed the airline’s liabilities, totaling Rs654 billion, to restore investor confidence.
Privatization officials emphasized that the PIA privatisation is not a simple sell-off but a turnaround strategy aimed at operational revival and efficiency. The process is seen as a crucial test for Pakistan’s broader economic reforms.
The Privatization Commission confirmed that while 75% of PIA’s shares will be sold, 25% will remain with the government. Bidders will provide figures for both the government share and direct investment into the airline, ensuring funds are used for PIA’s revival.
In other news read more about Fauji Fertiliser Withdraws From PIA Privatisation Bidding
With strong consortiums now participating, the outcome of the PIA privatisation will shape the future of the national airline and influence investor confidence in upcoming privatization initiatives.
