ISLAMABAD: Pakistan on Tuesday concluded bidding for the privatization of its loss-making national flag carrier, Pakistan International Airlines (PIA), with the Arif Habib Group emerging as the winner after a second round with a Rs135 billion ($486 million) bid, state television showed.
Three prequalified bidders submitted offers for a 75 percent stake in the airline, with the Arif Habib Group opening with a bid of Rs115 billion ($414 million), ahead of Rs101.5 billion ($365 million) from the Lucky Group and Rs26.5 billion ($95 million) from private airline Airblue.
The opening round developed into a prolonged head-to-head contest between the two leading bidders, with Lucky Group repeatedly matching higher offers before the Arif Habib Group finally pulled ahead with a Rs135 billion bid in the second round.
“We would like to congratulate the Arif Habib Consortium on winning,” a representative of the Lucky Group said, conceding after the final round.
The bids were opened and concluded in a live, televised ceremony in the presence of bidders and media representatives, part of what the government has described as an effort to ensure transparency in one of the country’s largest privatization transactions.
“It is extremely necessary to make this entire process transparent because this is the biggest transaction in the history of Pakistan,” Prime Minister Shehbaz Sharif said during a cabinet meeting earlier in the day.
“If the auction is held in a successful manner, then privatization will just take off,” he added.
Pakistan moved to privatize PIA while retaining its name and branding, according to the prime minister’s office.
The sale marks Islamabad’s most aggressive attempt in decades to reform the debt-ridden airline, which has accumulated more than $2.8 billion in losses.
Earlier, the government had prequalified four investor groups in July, but Fauji Fertilizer Company, part of a military-backed conglomerate, withdrew from the process before bidding began.
PIA’s sale is a central pillar of Pakistan’s economic reform agenda under a $7 billion bailout agreed last year with the International Monetary Fund.
This was Pakistan’s third attempt to privatize PIA, following a failed 2024 auction that attracted only one bid of $35 million, far below the government’s nearly $300 million valuation, according to Privatization Commission records.
Once considered among Asia’s leading airlines, PIA has struggled for decades with mismanagement, political interference, overstaffing and mounting debt.
A 2020 pilot licensing scandal led to bans on flights to the European Union, the United Kingdom and the United States, further shrinking revenues. However, those bans were recently lifted, giving fresh impetus to the government’s privatization drive.











