KARACHI: The Arif Habib Consortium has officially acquired Pakistan International Airlines (PIA), winning the privatisation bid with an offer of Rs135 billion, media reported.
The consortium purchased 75 percent of the national carrier’s shares, surpassing its closest competitor, the Lucky Consortium, whose final bid stood at Rs134 billion.
Officials said that under the terms of the deal, the government will receive Rs10.2 billion in cash immediately. This privatization marks the first major large-scale privatization in Pakistan in the last two decades and is expected to save taxpayers around Rs35 billion annually in subsidies and operational costs.
The acquisition of PIA is part of the government’s ongoing economic reform agenda aimed at restructuring loss-making state-owned enterprises and improving operational efficiency. Analysts say the privatization is a significant milestone, signaling renewed confidence in Pakistan’s investment climate.
Strong Competition Marks PIA Privatization Process
Earlier, the PIA privatisation process saw three bids in the initial phase. A consortium led by Arif Habib Corporation Limited, including Fatima Fertiliser Company Limited, City Schools, and Lake City Holdings, had initially offered Rs115 billion. The Lucky Group consortium, comprising Lucky Cement Limited, Hub Power Holdings Limited, Kohat Cement Company Limited, and Metro Ventures, submitted Rs101 billion, while domestic airline Air Blue (Private) Limited placed the lowest bid of Rs26.5 billion.
The bids were reviewed by the Privatisation Commission Board, which confirmed the reserve price at Rs100 billion. The second and final phase of open bidding between the Arif Habib Group and the Lucky Group determined the ultimate winner.
Adviser to the Prime Minister on Privatization, Muhammad Ali, called the development a “major milestone,” noting that no large-scale privatization had been conducted in the last 20 years. The government has emphasized transparency, broadcasting all bidding rounds live on television and streaming them across official social media platforms.
PIA privatisation is part of Prime Minister Shehbaz Sharif’s economic reform agenda, aimed at restructuring loss-making state-owned enterprises. Officials stated that under private ownership, the airline is expected to improve operational efficiency, financial performance, and restore its former standing as the country’s flagship carrier.
Last year, a separate attempt to privatize PIA saw the government set a minimum price of $305 million for a 60 percent stake, but the only bid received was $36 million from real estate developer Blue World City, which later withdrew due to financial concerns and the airline’s operational challenges.
With the bidding now complete, the Arif Habib Group is poised to lead PIA’s revival, marking a significant step in Pakistan’s privatization drive and signaling renewed hope for the national airline. –Agencies
