The Arif Habib Consortium has emerged as the successful bidder in the privatisation of Pakistan International Airlines Corporation Ltd (PIACL) after securing the airline with a Rs135 billion bid during an open auction held in Islamabad. This development marks Pakistan’s first major airline privatisation in nearly two decades.
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The auction process witnessed competitive participation from leading local business groups. Lucky Cement and Airblue also took part in the bidding, although Airblue exited early after submitting a bid below the reference price. In the first round, Lucky Cement offered Rs101.5 billion, while the Arif Habib Consortium bid Rs115 billion.
Following a brief recess, a second round of open bidding was conducted, during which the Arif Habib Consortium raised its offer to Rs135 billion, narrowly surpassing Lucky Cement’s final bid of Rs134 billion.
The bidding process was conducted transparently and was broadcast live on multiple platforms to ensure public visibility and accountability.
Expansion and Employment Plans:
Speaking after securing the bid, Arif Habib stated that PIA is a national asset with significant growth potential. He outlined plans to expand the airline’s fleet to 38 aircraft in the initial phase, with the possibility of increasing it to 65 aircraft in the future, depending on market demand.
He also expressed confidence in the airline’s existing workforce, stating that experienced employees would be retained, while expansion plans could lead to the creation of new job opportunities.
The consortium has also indicated its intention to invite foreign airlines and additional investors to participate in the venture after the transaction receives final approvals.
Government Perspective:
Government officials described the privatisation as a key milestone in ongoing economic reforms aimed at reducing financial pressure from state-owned enterprises and attracting private investment.
The federal government has appreciated the competitive and transparent bidding process and indicated that further decisions regarding the remaining shareholding of PIA may be considered within the next 90 days.
The deal is subject to final approval by the federal cabinet, after which the transaction will move toward completion.
