After a closely contested bidding process, the Arif Habib Consortium has emerged as the successful bidder for the privatisation of Pakistan International Airlines (PIA).
According to official details, the bidding process for PIA’s privatisation has been completed, with the Arif Habib Consortium acquiring 75 percent shares of the national airline for Rs135 billion. The Lucky Cement Consortium submitted the second-highest and final bid of Rs134 billion, while Airblue offered Rs26.5 billion.
The Arif Habib Consortium includes Arif Habib Limited, Fatima Fertilizer, The City School, and Lake City Holdings.
Privatisation Policy and Government Stance
Chairman of the Privatisation Commission Muhammad Ali stated that the privatisation of PIA is a key component of the government’s economic policy. Speaking to the media, he said the bidding process would open new avenues for investment in the aviation sector.
He added that bidders were informed of the privatisation framework in April. Of the four bidders, two expressed interest in purchasing 100 percent shares, while two opted for 75 percent ownership. Ultimately, the government proceeded with the sale of 75 percent shares.
Muhammad Ali further noted that 92.5 percent of the proceeds from the sale will be reinvested into PIA, while the remaining 7.5 percent will be transferred to the government. He emphasized that the objective is not merely to sell the airline, but to put it back on a sustainable and self-reliant footing.
Future Share Sale and Payment Structure
The government has also decided to sell the remaining 25 percent shares within 90 days, while two-thirds of the payment will be received upfront. Earlier in April, the cabinet had approved the sale of 51 to 100 percent shares as part of the broader privatisation plan.
Investor Obligations and Asset Transfer
According to privatisation officials, the new investor will be required to inject Rs80 billion over the next five years to stabilize and modernize PIA.
The successful bidder will take control of key operational units, including aviation operations, cargo services, the training wing, and catering (kitchen) business.
Under the agreed terms, PIA employees will be granted job protection for one year, while pensions and post-retirement benefits will remain the responsibility of the holding company. The new owners will be responsible for salaries and benefits of existing employees, alongside ensuring immediate financial support and professional management to restore the airline’s operational efficiency.
Commitment to Revival
Commenting on the development, representatives of the Arif Habib Consortium said the move marks a victory for Pakistan, expressing confidence that PIA’s historic reputation will be restored through professional governance and sustained investment.
