Pakistan’s long-delayed effort to privatise its national flag carrier took a decisive step forward on Tuesday as the PIA privatisation bidding process officially entered its much-anticipated bidding stage, drawing interest from three major pre-qualified bidders.
In a live, televised ceremony broadcast on state television, representatives of the bidding groups arrived one by one to submit their sealed offers for a majority stake in Pakistan International Airlines (PIA). The envelopes were placed into a transparent box, symbolising what the government described as a renewed commitment to openness and transparency after last year’s failed attempt.
The first bid came from a powerful consortium led by Lucky Cement Limited, joined by Hub Power Holdings Limited, Kohat Cement Company Limited (KOHC), and investment firm Metro Ventures.
The second offer was submitted by a consortium headed by Arif Habib Corporation Limited, with Fatima Fertiliser Company Limited, City Schools, and Lake City Holdings Limited as partners.
The third bidder was Air Blue (Private) Limited, Pakistan’s largest private airline, making it the only aviation-sector player in the race.
The bids are set to be opened during a formal ceremony starting at 3:30 pm, with a second open-bidding phase scheduled later in the day, according to officials.
Prime Minister Shehbaz Sharif, welcoming the progress, praised the Privatisation Commission and cabinet members for ensuring a transparent process. He also urged ministers to attend the second bidding ceremony, underlining the political importance of the sale.
This marks Pakistan’s second televised attempt to sell PIA after last year’s auction collapsed. In that process, only one bid—$36 million for a 60% stake—was received, far below the government’s $305 million valuation, forcing the sale to be scrapped.
Several key changes have improved confidence in the airline and the PIA privatisation bidding process this time around. The government has absorbed most of PIA’s legacy debt, the airline has posted its first pre-tax profit in nearly 20 years, and crucially, the UK and European Union have lifted a five-year ban on PIA flights.
Those routes were among PIA’s most profitable and are expected to significantly boost revenues, supporting a higher valuation than in the previous failed auction.
Under the current plan, bidders are competing for a 75% stake in PIA. Of the total amount paid, 92.5% will be injected directly into the airline, while 7.5% will go to the government. The state will retain the remaining 25% stake, which bidders may choose to acquire later.
The winning bidder must pay two-thirds of the bid within 90 days, with the remaining amount payable within 12 months.
To address employee concerns, the government has guaranteed 12 months of job security. Pension liabilities and post-retirement benefits will be handled by a holding company, while salaries and current benefits will become the responsibility of the new owners.
Notably, Fauji Fertiliser Company Limited, once seen as a frontrunner, formally withdrew from the bidding last week. Officials clarified that parties not participating in the bidding cannot later join the winning consortium—a rule that no longer applies to Fauji Fertiliser after its withdrawal.
