Arif Habib consortium wins PIA Privatisation bid for Rs135 Billion

KARACHI – Arif Habib-led consortium win bidding of Pakistan International Airlines (PIA), securing the deal for Rs135 billion in major milestone in government’s ongoing efforts to restructure and privatise the loss-making national carrier.

Lucky Cement, Airblue, and investment giant Arif Habib submitted sealed bids in a public ceremony broadcast live on national TV. After first round ends, the second round of bidding for Pakistan International Airlines (PIA) is set for 5:40 pm today after the first round saw Arif Habib consortium (Rs115bn) and Lucky Cement (Rs101.5bn) surpass the government’s reference price of Rs100 billion. Airblue also participated with a bid of Rs26.5 billion.

A 30-minute break was taken for the top bidders to consult, and the second round starts at Rs115 billion with a minimum increment of Rs250 million.

Prime Minister’s Adviser on Privatization, Muhammad Ali, praised the bidders and said PIA’s privatization could attract new investment to the country. The sealed-bid submission was broadcast live, and the Privatisation Commission Board will now approve the reference price.

This auction marks a key moment for PIA, with the potential to revive the national carrier and boost Pakistan’s aviation sector.

The reference price will now be reviewed, and the suspense will end at 4:30 pm when the envelopes are opened, revealing who will take control of the ailing national carrier. Prime Minister Shehbaz Sharif hailed the auction as “potentially the largest transaction in the country’s history,” promising full transparency through live coverage on TV and social media.

Only the winning bidder will manage PIA, while the others are barred from future participation. Rumors of behind-the-scenes stake-sharing talks between Arif Habib and Lucky Cement added extra drama, but Lucky Cement reportedly walked away. The nation now waits to see who will claim Pakistan’s largest-ever airline privatization.

Pakistan’s loss making entity Pakistan International Airlines (PIA) goes under the hammer as the government opens bids for a 75% stake, aiming to breathe new life into the struggling airline. Investors are set to submit their offers in a high-stakes process that could transform PIA’s future and restore legacy of national air carrier.

Privatisation Commission of Pakistan prepares to hold high-stakes bidding for a 75% stake in the national airline on Tuesday. Officials confirmed that sealed bids from prospective investors must be submitted by 10:30 am, with reference price already okayed by Privatisation Commission Board and the Cabinet Committee on Privatisation.

Three prequalified groups are competing to acquire 75% stake in PIA. The first is a consortium that includes Lucky Cement Limited, Hub Power Holdings Limited, Kohat Cement Company Limited, and Metro Ventures (Private) Limited.

The second consortium brings together Arif Habib Corporation Limited, Fatima Fertiliser Company Limited, City Schools (Private) Limited, and Lake City Holdings (Private) Limited.

The third bidder is the standalone company, Airblue (Private) Ltd. Each of these entities has submitted the required earnest money to participate in the high-stakes privatisation process.

The much-anticipated bids will be unveiled in public ceremony at 3:30 p.m., where investors will be present as both the submitted offers and the reference price are disclosed. The process will be conducted strictly under the established rules and regulations, with Privatisation aide to PM, Muhammad Ali, scheduled to address the media after the bidding concludes.

This privatisation forms key part of PM Shehbaz Sharif’s ambitious economic reform agenda, aiming to revive PIA and restore its stature as a national icon.

Three prequalified bidders entered the race, submitting required earnest money, Airblue (Pvt) Ltd, a consortium led by Lucky Cement alongside Hub Power Holdings, Kohat Cement, and Metro Ventures, and consortium led by Arif Habib Corporation with Fatima Fertiliser, City Schools, and Lake City Holdings. Notably, Fauji Fertiliser Company Ltd, previously seen as a leading contender, formally withdrew from the bidding last week, adding an unexpected twist to the high-stakes process.

The government stressed its commitment to transparency and credibility throughout the privatisation, with live coverage planned across television channels, official government platforms, and social media handles of the Privatisation Division.

Officials have underscored that the privatisation is not just a transaction but a historic opportunity to restore PIA’s legacy and relaunch the airline as a symbol of national pride, ensuring it soars once again with the stature of a true national legend.