Arif Habib group wins PIA privatisation bid for Rs135 billion
Business
The second round opened with a base price of Rs115 billion
ISLAMABAD (Dunya News) – The second phase of bidding for the privatisation of Pakistan International Airlines (PIA) has completed with Arif Habib consortium winning the bid for seveny-five percent shares at Rs135 billion.
Earier in the initial phase, two contenders — Arif Habib and Lucky Cement — had submitted offers exceeding the reference price of Rs100 billion. Private carrier Air Blue (Private) Ltd offered Rs26.5 billion.
The second round opened with a base price of Rs115 billion. By the close of bidding, Lucky Cement raised its offer to Rs134 billion, after which Arif Habib responded by increasing its bid to Rs135 billion.
The bids were opened during a live televised ceremony by the Privatisation Commission, marking the country’s second attempt to sell the once-flagship airline.
Chairman of Privatisation Commission, Muhammad Ali, has just shared a major update on the sale of PIA. The bidding process is entering its final hours!#PIA #Privatisation #Pakistan #Aviation #BusinessNews pic.twitter.com/lh1fuObsHQ
— Ministry of Privatisation, Government of Pakistan (@PrivComPakistan) December 23, 2025
Privatisation Commission Chairman Muhammad Ali said the government’s goal was not merely to sell PIA but to help it stand on its own feet, attract investment and restore its past glory. As two bids crossed the government’s reference price of Rs100 billion, the process will now move to an open auction to determine the final winner.
Three consortia take part in bidding for PIA privatisation
The bidding comes after last year’s failed privatisation attempt, which collapsed due to a single low offer. Since then, PIA’s outlook has improved following government assumption of legacy debt, a return to pre-tax profit after two decades, and the lifting of UK and EU flight bans.
Under the deal structure, 92.5% of the bid amount will be injected into PIA, while 7.5% will go to the government. The winning bidder will acquire a 75% stake, with an option to purchase the remaining shares later. Officials believe fresh capital and professional management could turn the tide for the struggling airline.
