Pakistan International Airlines (PIA) privatization entered the bidding phase on Tuesday, with three pre-qualified consortia submitting offers for a majority stake in the national carrier.
The bidders include:
- A Lucky Cement-led group featuring Hub Power Holdings, Kohat Cement (KOHC), and Metro Ventures.
- An Arif Habib Corporation-led consortium with Fatima Fertiliser, City Schools, and Lake City Holdings.
- Private airline Air Blue (Private) Ltd.
This marks Pakistan’s second televised auction after last year’s flop, which drew just one lowball bid far below the reference price, stalling the first major privatization in nearly 20 years. Bids were deposited into a transparent box during a live state TV broadcast, with a second open-bidding round planned later Tuesday at 3:30 pm. PM Shehbaz Sharif praised the transparency and urged cabinet attendance.
Fauji Fertiliser, once a frontrunner, withdrew last week. Of the 75% stake proceeds, 92.5% reinvests in PIA and 7.5% goes to government; the remaining 25% stays with the state (bidders can buy later). Winners pay two-thirds within 90 days, one-third in 12 months. Non-bidders can’t join the winning group post-auction.
PIA employees get 12 months’ job security; pensions and benefits shift to a holding company, salaries to new owners. The airline serves 78 destinations with 170 global slots but needs capital and management overhaul.
Last year’s $305 million minimum for 60% got a $36 million bid from Blue World City, which balked at financial issues. Prospects improved: government absorbed debt, PIA posted its first pre-tax profit in 20 years, and EU/UK lifted a five-year ban on key routes—boosting potential valuation.
This sale anchors IMF-mandated privatizations of banks, power firms, and other loss-makers to cut fiscal losses and attract investors.
