Arif Habib Consortium has successfully acquired Pakistan International Airlines under the government-led privatization drive, as PIA privatization deal concluded with a highest bid of Rs 135 billion.
The consortium secured 75 percent shares of the national airline during the third round of bidding, marking one of Pakistan’s most significant privatization transactions in recent years.
According to official details, Lucky Consortium finished second with a closely matched bid of Rs 134 billion, reflecting strong competition among major business groups.
The bidding process progressed through multiple rounds after initial offers failed to meet expectations set by the Privatization Commission and relevant stakeholders.
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In the first round, Lucky Consortium offered Rs 101.5 billion, while Airblue submitted a considerably lower bid of Rs 26.5 billion for the airline.
Arif Habib Consortium led the first round by proposing Rs 115 billion, setting the tone for competitive bidding and signaling strong investor interest.
During the second round, bidding intensified as Lucky Consortium raised its offer to Rs 120.25 billion, closely followed by Arif Habib Consortium at Rs 121 billion.
The final and decisive third round saw Arif Habib Consortium surpass competitors with a bid of Rs 135 billion, securing the majority stake.
Advisor to the Privatization Commission Muhammad Ali stated that the PIA privatization deal is part of a broader national reform agenda.
READ: FPCCI proposes to buy Pakistan International Airlines (PIA)
He emphasized that the government’s objective is not merely selling the airline but reviving it as a competitive and financially sustainable national carrier.
According to Muhammad Ali, privatization is expected to attract fresh investment, improve operational efficiency, and restore public confidence in the airline.
He further revealed that 92.5 percent of the funds generated through the bid will be reinvested directly into PIA’s improvement and restructuring.
These funds will be used to modernize fleet operations, enhance service quality, and address long-standing financial and administrative challenges.
The advisor explained that payment flexibility has been offered, allowing bidders to pay two-thirds of the amount initially and the remainder later.
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Authorities have also permitted the inclusion of up to two additional partners after the bidding process, providing room for strategic collaborations.
Government officials believe this flexibility will help ensure smooth ownership transition and long-term stability for the airline.
Once considered among Asia’s leading carriers, PIA has struggled for decades due to mismanagement, financial losses, and operational inefficiencies.
The privatization move aims to restore the airline’s past reputation and strengthen Pakistan’s aviation sector amid growing regional competition.
