The Pakistan government on Tuesday completed the sale of a 75 percent stake in Pakistan International Airlines, bringing an end to years of failed attempts to privatise the loss making national carrier. The winning bid of Rs135 billion was made by the Arif Habib consortium, which will now take management control of the airline.
The consortium includes Arif Habib Corporation Limited, Fatima Fertilizer Company Limited, City Schools Private Limited, and Lake City Holdings Private Limited. Out of the total bid amount, the government will receive Rs10.12 billion in cash, while the remaining funds will be invested directly into PIA to support its revival.
The auction process moved into a second round after two bidders crossed the minimum expected price of Rs100 billion. In the final stage, the Arif Habib consortium secured the deal with a bid of Rs135 billion, narrowly beating the Lucky consortium, which offered Rs134 billion.
Officials said the bidding was conducted in a transparent manner and opened in front of the media. Business leaders and analysts closely watched the process, noting PIA’s long financial decline, with losses estimated at Rs800 billion over the past two decades.
The government will retain a 25 percent stake, with the option for the new owners to buy it later. The privatisation is part of a wider reform plan aimed at fixing struggling state owned enterprises and meeting commitments under the IMF programme.
