The second round of auction for the divestment of a 75% stake in Pakistan International Airlines (PIA) commenced on Tuesday, attracting strong interest from major business consortia. The auction, initially scheduled for 3:30pm, began at 4:30pm, with two out of three qualified parties submitting bids above the government’s minimum expected price of Rs100 billion.
Arif Habib consortium emerged with the highest offer of Rs121 billion, followed by Lucky consortium at Rs101.5 billion, while Air Blue consortium bid Rs26.5 billion. The Privatisation Commission emphasized transparency and accountability throughout the process, with all bids opened in front of the media. PC Chairman Muhammad Ali confirmed that if multiple bids exceeded the reference price, an open auction would follow.
Three consortia participated: Lucky Cement Limited, Hub Power Holdings Limited, and Kohat Cement Company Limited; Arif Habib Corporation-led consortium; and Lake City Holdings with Air Blue. Fauji Foundation withdrew prior to submission. The government will retain a 25% stake, with the successful bidder allowed to acquire it later. The proceeds will largely be reinvested into PIA to revitalize its operations, including fleet expansion from 18 aircraft.
Privatisation forms a key part of Prime Minister Shehbaz Sharif’s economic reform agenda, aligned with IMF objectives to restructure loss-making state enterprises.
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