Live auction for PIA’s 75% shares underway

Arif Habib Group currently stands as highest bidder with LCI close behind

A second round of auction for the privatisation of Pakistan International Airlines (PIA) will be held shortly, following the conclusion of the first round, in which two bidders, Arif Habib Consortium and Lucky Cement, offered above the government’s reference price of Rs100 billion.

Lucky Cement submitted a bid of over Rs101.5 billion and signed the record sheet. Airblue followed, with its representative announcing a bid of Rs26.5 billion aloud. The final bid came from Arif Habib Consortium, offering Rs115 billion. All bids were recorded and signed on the official sheets, with Arif Habib emerging as the highest bidder among the three.

The government’s approved reference price for the 75% stake is Rs100 billion, and the first round of bidding saw competitive offers from pre-qualified bidders. An open auction will now take place to finalise the sale.

This marks the second phase of PIA’s privatisation process, under which bids are opened and matched against the reserve price. The process is part of the government’s broader plan to attract investment and restructure the airline, aiming to restore it to a leading position in the aviation sector.

Read: All set for auction of PIA's 75% shares today

Prime Minister’s Adviser on Privatisation and Chairman of the Privatisation Commission Muhammad Ali said the government’s objective was “not merely to sell PIA and collect money, but to turn it into a best-in-class airline.” He said the airline required fresh investment to regain its lost position, adding that the transaction structure had been revised accordingly.

Muhammad Ali said a payment schedule had been finalised under the new privatisation plan. “Two-thirds of the payment will be made upfront, while the remaining amount will be paid later,” he said, adding that “the outstanding amount has also been secured through safeguards.”

Addressing a ceremony, he said the privatisation of PIA would pave the way for privatisation of other state-owned entities. “In April, the government decided to sell 51 to 100 per cent of shares, and our aim was to attract as many bidders as possible,” he said. He added that the current bid was for a 75 per cent stake, while “the buyer will also be allowed to purchase additional shares.”

"The first phase of the bidding process has been completed; now the matter will go to the Privatisation Commission," said Privatisation Commission (PC) Chairman Muhammad Ali. The bids came from pre-certified bidders Lucky Cement, private airline Airblue and investment firm Arif Habib. Fauji Fertiliser and other bidders have pulled out of the auction.

The PC board reviewed and approved the reference price (the minimum price of sale), the exact figure of which remains confidential. Ali said that once the reference price is approved by the board, it will be forwarded to the Cabinet Committee for final approval.

PC Board Meeting in progress: the Privatisation Commission Board is underway for determination of the reference prices a key step supporting a structured, transparent process.

https://t.co/84NmfWfgZb#PrivatisationCommission #Transparency #Governance #Privatisation #Pakistan pic.twitter.com/FFOx2YAUQW

— Ministry of Privatisation, Government of Pakistan (@PrivComPakistan) December 23, 2025

Once the Cabinet approved the reference price, the federal cabinet ratified it.

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

As the bids exceeded the reserve price, an open auction will take place now. Once the successful bidder is identified, the bidder will have 90 days to purchase the remaining 25% of shares. The government had taken responsibility for PIA's liabilities of Rs 654 billion last year. The investor is required to commit an investment of Rs80 billion over the next five years, and of the proceeds from the sale of 75% of PIA’s shares, 92.5% will be allocated to the airline for reinvestment, while the remaining 7.5% will be transferred to the government.

The government claims that this privatisation is crucial for the airline's financial health and profitability. "No major privatisation of a national asset has taken place in the last 20 years, making this move historic for Pakistan," Ali said.

Additionally, the PC has stated that employee job security will be guaranteed for one year. The holding company will be responsible for managing pension plans and post-retirement benefits.

PIA has been a target for privatisation by previous governments. The airline has struggled with mounting debts, outdated fleets, and an inability to keep pace with the competition.