Pakistan government on Tuesday completed the sale of a 75% stake in its national carrier, Pakistan International Airlines (PIA), for Rs135 billion, ending years of stalled efforts to privatise the loss-making airline.
The Arif Habib consortium acquired the controlling stake. The consortium includes Arif Habib Corporation Limited, Fatima Fertiliser Company Limited, City Schools (Private) Limited, and Lake City Holdings (Private) Limited.
In the first round of bidding: Lucky consortium offered Rs101.5 billion; Air Blue consortium bid Rs26.5 billion; Arif Habib consortium bid Rs115 billion. The government’s minimum expected price was Rs100 billion.
The auction moved to a second round with a base price of Rs100 billion. Arif Habib and Lucky participated; Arif Habib won with the highest bid of Rs135 billion, while Lucky placed Rs134 billion and congratulated them after their last bid.
The government will receive Rs10.12 billion in cash from the Rs135 billion; the remainder will be invested back into PIA.
Earlier, the Privatisation Commission Board presented recommendations for the reference price for the 75% stake.
The reference price was then submitted to the Cabinet Committee on Privatisation (CCOP) for approval, after which the federal cabinet formally endorsed it.
Three consortia submitted their sealed bids to acquire control of the national flag carrier.
The authorised representative of the Lucky consortium submitted its bid first, followed by representatives of the Air Blue–Arif Habib Limited consortium, respectively.
“Today’s PIA bidding is built on transparency, efficiency, and responsibility—supporting fairness, accountability, and public trust through a clear process,” the Privatisation Commission said earlier on Tuesday.
“The received bids will be opened in front of the media,” said PC Chairman Muhammad Ali, in a video message on Tuesday.
“If more than one bid is higher than the reference price, then there will be an open auction,” he added.