PIA all set for fresh bidding after failed privatisation attempt last year

Pakistan International Airlines Corporation Limited (PIACL) is all set to enter the bidding process tomorrow (Tuesday) for its privatisation, with three bidders expected to submit their offers to acquire management control of the national carrier. Meanwhile, Fauji Foundation has withdrawn from the process, a PIA spokesperson confirmed.

The three bidders are:

• A consortium comprising Lucky Cement Limited, Hub Power Holdings Lim­ited, Kohat Cement Com­pany Limited, and Metro Ventures (Private) Limi­ted
• A consortium comprising Arif Habib Corporation Limited, Fatima Fertiliser Company Limited, City Schools (Private) Limited, and Lake City Holdings (Private) Limited
• Air Blue (Private) Ltd.

This will be the government’s second attempt to sell the national carrier after an earlier attempt to privatise collapsed last year amid weak investor interest and unresolved financial challenges.

Blue World City consortium, the only bidder, refused to match the minimum expectation of the Privatisation Commission of Rs85.03 billion and stuck to its original offer of Rs10 billion for a 60% stake in the PIA, ending the bidding process of the national flag carrier’s privatisation late last year.

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“PIA bidding is set for tomorrow (December 23, 2025),” PIA’s spokesperson Abdullah Hafeez Khan confirmed to Business Recorder. “The Cabinet [Cabinet Committee on Privatisation] will set a minimum acceptable price to sell the national carrier after the qualified parties drop their bids in closed-envelopes in a box. And then the bid-envelopes will be opened in front of the parties (and in a live stream on state-run PTV/social pages),” Khan said.

Business Recorder expects to live stream the bidding process on its website as well.

The party that will place the highest price will win the bidding. In case all expected three bids are cast below the minimum acceptable price, the bidders will be asked to match the minimum acceptable price, he said.

“In case more than one bidder matches the asked price, open bidding will be held.”

In a separate statement, the Privatisation Commission (PC) also confirmed that open bidding for 75 percent shares of the national carrier will be held tomorrow.

“Reference price for PIACL’s bidding will only be approved by the Privatisation Commission Board and the Cabinet Committee on Privatisation after bids have been received.

“The bids will be opened in a ceremony starting at 3:30pm in the presence of the bidders.The bids and the reference prices will be announced and the bidding will be concluded as per agreed terms.

“The event will be telecast live on TV and digital media. Adviser to the Prime Minister on Privatisation, Muhammad Ali will also hold a press conference after the conclusion of the bidding process,” the PC said.

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Meanwhile, Abdullah Hafeez Khan confirmed that Fauji Foundation has withdrawn from the process.

The three qualified consortiums include Lucky Cement Limited, Arif Habib Corporation Limited and Airblue Limited, Khan confirmed.

Last week, Lucky Cement said in a notice to the Pakistan Stock Exchange (PSX) that its board had approved its participation, as part of a consortium, in the ongoing PIA privatisation process.

The government restarted the PIA sale process with fresh EOI call in April this year, marking a renewed effort to offload its stake in the national carrier. It first set June 3 as deadline for EOI submission, but later extended it till June 19.

It has been seeking to sell a 51-100% stake in the debt-ridden carrier, to raise funds and reform cash-draining state-owned enterprises as envisaged under a $7 billion International Monetary Fund programme (IMF).

With its plan to privatise a number of entities, the government missed a modest target of collecting Rs30 billion through privatisation proceeds in the financial year 2024-25.