In a historic move, the Arif Habib consortium won the auction for Pakistan International Airlines Corporation Ltd (PIACL) with a bid of Rs135 billion, marking the country’s first major privatisation in nearly two decades. The auction, held in Islamabad, was telecast live and streamed across TV channels and government social media platforms, highlighting the transparency and competitive nature of the process.
The privatisation began with pre-qualified bids from Lucky Cement, Airblue, and Arif Habib. Airblue exited early after offering Rs26.5 billion, below the Rs100 billion reference price. Lucky Cement placed an initial bid of Rs101.5 billion, while Arif Habib bid Rs115 billion. Following a brief consultation break, the second round saw bidding intensify, with Lucky Cement raising its offer to Rs134 billion before Arif Habib clinched the win with Rs135 billion.
Adviser to the Prime Minister on Privatisation Muhammad Ali confirmed that the government structured the transaction to sell 75% of PIA initially, with an option to acquire the remaining 25% within 90 days at a 12% annual premium. The process ensures that all winning bids are reinvested into the airline for operational improvements and growth.
Arif Habib described the acquisition as an opportunity to “promote investment in the country” and restore the national airline to its former glory. The consortium plans to expand PIA’s fleet from the current 18 aircraft to 38 in the first phase, with a potential increase to 65 aircraft depending on demand. Habib emphasized that investment in the airline would create employment opportunities and strengthen operational efficiency.
The successful bidder also indicated openness to collaborating with foreign airlines and investors post-acquisition to further enhance PIA’s capacity and service offerings. The consortium’s bid exceeded the adviser’s valuation of Rs131 billion, reflecting confidence in the airline’s potential and the strategic importance of timely capital injection.
Economist Khaqan Najeeb praised the privatisation as a “sought-after microeconomic reform” and a “very good start” after nearly two decades of stalled efforts. He highlighted that the transaction removes liabilities from PIA’s balance sheet, provides tax incentives, and positions the airline for sustainable growth. Najeeb stressed that expanding the fleet and improving operational efficiency are key to achieving economies of scale and maximizing the national airline’s hidden value.
Prime Minister Shehbaz Sharif called the sale a “historic day for Pakistan,” underscoring the government’s commitment to privatise loss-making state-owned enterprises transparently. Finance Minister Muhammad Aurangzeb and Defence Minister Khawaja Asif also congratulated the successful bidders, emphasizing that the privatisation strengthens investor confidence and opens the door for additional domestic and foreign investment in Pakistan’s aviation sector.
The privatisation of PIA is widely regarded as a milestone in Pakistan’s economic reform agenda. By combining competitive bidding, government oversight, and strategic reinvestment, the transaction aims to restore the airline’s operational capacity, attract new investment, and ensure that PIA contributes positively to the national economy.
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