The privatization process of the national airline has been successfully completed, with the Arif Habib Consortium emerging as the highest bidder by offering Rs135 billion to acquire Pakistan International Airlines (PIA).
During the final stage of the bidding process conducted by the Privatization Commission Board, the Arif Habib Consortium raised its offer from Rs121 billion to Rs135 billion, securing the deal.
The Lucky Consortium submitted a competing bid of Rs134 billion but failed to qualify due to a shortfall of Rs1 billion.
According to officials, several pre-qualified groups participated in the bidding, including Airblue Group, Lucky Cement Consortium, and Arif Habib Consortium. The bidding process was conducted in a transparent manner.
The government has decided to sell 75 percent shares of PIA, while the successful bidder will be given 90 days to purchase the remaining 25 percent shares if desired.
Earlier, the government had assumed Rs654 billion in liabilities of PIA, making the privatization more attractive for investors.
The Privatization Commission stated that 92.5 percent of the proceeds from the sale will be reinvested in PIA, while the remaining 7.5 percent will be transferred to the government.
The successful investor will be required to invest at least Rs80 billion over the next five years to restore the airline’s financial stability. Employees will be provided job protection for one year, while pension and post-retirement benefits will remain the responsibility of the holding company.
Finance Minister praised the Privatization Commission for conducting a transparent bidding process, stating that whoever wins, Pakistan wins, and expressed confidence that the new owners will transform PIA into a modern and competitive airline.
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