Race heats up for PIA privatisation as four bidders pre-qualified

Two of most serious contenders reportedly willing to bring Fauji Fertiliser on board as a partner

The race to acquire Pakistan’s national carrier, PIA, has officially entered its final stages, with some bidders seeking support from internationally recognised airlines.

The government’s renewed effort to privatise PIA comes after a failed bid last year, when only one offer, Rs10 billion ($36 million) from real estate developer Blue World City, was received for a 60 per cent stake. The offer, far below the government’s floor price of Rs85 billion ($305m), was rejected.

The Privatisation Commission reopened the process in April 2025, inviting expressions of interest for a 51 to 100 per cent stake from both local and international investors.

The most serious potential buyer withdrew due to outstanding loans and tax issues. However, most of these issues have now been addressed, and four bidders have been pre-qualified.

The pre-qualified bidders include:

• Lucky Cement Consortium, led by Habibullah Khan and others

• Arif Habib Consortium, including Fatima Fertiliser and others

• Fauji Fertiliser and Air Blue, whose position remains less clear

The first two consortia are considered the most serious contenders; both consortia are reportedly willing to bring Fauji Fertiliser on board as a partner.

Read: PM announces live broadcast of PIA bidding process on December 23

The Lucky Group is reportedly investing more time and money, while the Arif Habib Consortium has shown growing interest. Both have engaged international aviation advisors: Lucky Group appointed Turkey’s Pegasus Airlines for technical consultancy, while Arif Habib brought in Sibra Aviation Partners.

Following their advice, the two serious parties have requested multiple adjustments to the privatisation structure and commission processes, most of which have been approved, clearing the way for the sale.

As the privatisation date approaches, PIA’s 6,500 employees have reportedly become increasingly anxious about their future.

Read more: PIA privatisation: four firms prequalify for bidding to acquire 75% stake

Analysts suggest that, based on the potential profits and financial models prepared by the prospective board, the government may raise the reserve price.

Last year, PIA’s reserve was Rs85 billion, and it is now expected to be set between Rs90 and Rs100 billion, as the airline has already earned Rs11 billion pre-tax profit in the current financial year. Buyers are also optimistic about reviving PIA.

Prime Minister Shehbaz Sharif announced on December 4 that the bidding process on December 23 for the privatisation of PIA would be broadcast live on national television, in an effort to ensure transparency.