Second PIA privatisation effort moves ahead with five bidders

The government’s renewed push to privatise Pakistan International Airlines (PIA) has drawn interest from eight parties, with five formally submitting pre-qualification documents ahead of Thursday's deadline, the Privatisation Commission confirmed.

Among those to file documentation is a consortium comprising Lucky Cement, Hub Power Company, Kohat Cement, and Metro Ventures.

A separate group including Arif Habib Corporation, Fatima Fertilizer, The City School, and Lake City Holdings has also expressed interest in acquiring a majority stake in the loss-making national carrier.

Airblue and Fauji Fertilizer Company have submitted their documents independently, while expressions of interest were also received from Augment Securities, Serene Air, Bahria Foundation, Mega Holdings, and Equitas, who have indicated joint intent to participate.

Read More: Deadline to bid for PIA extended to June 19

Of the eight interested parties, five met the June 19 submission deadline for pre-qualification. These entities will now be granted access to a virtual data room as part of the next phase of due diligence. The commission said that all submissions will be assessed against pre-defined eligibility and financial criteria.

Buy-side due diligence has already commenced, with officials optimistic that the process may attract credible bidders in contrast to previous attempts.

This marks the government’s second attempt at privatising PIA after a failed bid last year. A 2024 auction had attracted just one bid — Rs10 billion ($36 million) from real estate developer Blue World City for a 60 per cent stake. The offer fell well below the government’s floor price of Rs85 billion ($305 million) and was subsequently rejected.

Also Read: Govt tightens PIA bidding terms

This year, the Privatisation Commission reopened the process in April, inviting expressions of interest from both domestic and international investors for a majority stake ranging from 51 to 100 per cent in PIA. The initial deadline of June 3, 2025 was later extended to June 19 to accommodate prospective buyers.

In an effort to ensure only financially viable parties move forward, the government introduced stricter qualification criteria for this round and explicitly barred provincial governments from participating in the bidding.

The sale of PIA is expected to be Pakistan’s first major privatisation in nearly two decades. Reviving loss-making state-owned enterprises such as PIA is a key structural benchmark under the country’s ongoing $7 billion bailout programme with the International Monetary Fund (IMF).