—— Gives approval to four potential bidders get for debt-ridden PIA
—— ‘‘Pre-qualified parties will now proceed to buy-side due diligence phase,” says privatisation Minister
—— Informs transaction structure for Roosevelt Hotel also approved
DM Monitoring
ISLAMABAD: The federal government said on Tuesday it had approved four parties, including business groups, to potentially bid for a stake in debt-ridden Pakistan International Airlines (PIA).
The government has been seeking to sell a 51-100% stake in the struggling national airline to raise funds and reform cash-draining, state-owned enterprises as envisaged under a $7 billion International Monetary Fund programme.
It would be the country’s first major privatisation in nearly two decades.
Among the bidding groups, one is a consortium of major industrial firms Lucky Cement, Hub Power Holdings, Kohat Cement, and Metro Ventures.
Another is led by investment firm Arif Habib Corp, and includes fertiliser producer Fatima Fertilizer, private education operator The City School, and real estate firm Lake City Holdings.
Additionally, Fauji Fertilizer Company and Pakistani airline Airblue, have been approved to bid for PIA.
“The pre-qualified parties will now proceed to the buy-side due diligence phase,” Privatisation Minis-ter Muhammad Ali said in a statement.
The review process is set to last two to two-and-a-half months, with final bidding and negotiations an-ticipated in the fourth quarter of 2025, Ali previously told Reuters.
The country’s privatisation ministry also said that the Cabinet Committee on Privatisation approved the transaction structure for the Roosevelt Hotel located in New York, including options for both outright sale and long-term lease.
From the Roosevelt Hotel, Pakistan is expecting over $100 million as a first payment during this year, Ali previously told media.
Earlier, The government’s renewed push to privatise Pakistan International Airlines (PIA) has drawn interest from eight parties, with five formally submitting pre-qualification documents ahead of Thurs-day’s deadline, the Privatisation Commission confirmed.
Among those to file documentation is a consortium comprising Lucky Cement, Hub Power Company, Kohat Cement, and Metro Ventures.
A separate group including Arif Habib Corporation, Fatima Fertilizer, The City School, and Lake City Holdings has also expressed interest in acquiring a majority stake in the loss-making national carrier. Airblue and Fauji Fertilizer Company have submitted their documents independently, while expres-sions of interest were also received from Augment Securities, Serene Air, Bahria Foundation, Mega Holdings, and Equitas, who have indicated joint intent to participate.
Of the eight interested parties, five met the June 19 submission deadline for pre-qualification. These entities will now be granted access to a virtual data room as part of the next phase of due diligence. The commission said that all submissions will be assessed against pre-defined eligibility and financial criteria.
Buy-side due diligence has already commenced, with officials optimistic that the process may attract credible bidders in contrast to previous attempts.
This marks the government’s second attempt at privatising PIA after a failed bid last year. A 2024 auc-tion had attracted just one bid — Rs10 billion ($36 million) from real estate developer Blue World City for a 60 per cent stake. The offer fell well below the government’s floor price of Rs85 billion ($305 mil-lion) and was subsequently rejected.
