ISLAMABAD: Pakistan International Airlines’ privatisation process advanced on Tuesday after three bids were submitted for a 75% stake in the national carrier. The bidding was carried out by pre-qualified parties, including Lucky Cement, private airline Airblue, and investment firm Arif Habib, while several potential bidders, including Fauji Fertiliser, withdrew from the process.
Privatisation Commission Chairman Muhammad Ali confirmed that the initial bidding phase had been completed and the process had now moved to the Privatisation Commission for further evaluation. He said the commission’s board would review and approve the reference price, or minimum sale price, which will remain confidential. Once approved, the reference price will be sent to the Cabinet Committee and later ratified by the federal cabinet.
If bids exceed the reserve price, an open auction will be conducted; otherwise, the highest bidder will be given the option to match the price. After selection, the successful bidder will have 90 days to acquire the remaining 25% shareholding.
The government has already absorbed PIA’s liabilities amounting to Rs654 billion. Investors are required to inject Rs80 billion over five years, with most sale proceeds reinvested into the airline. Authorities termed the privatisation a historic step, assuring one-year job security for employees and continued management of pensions and benefits.
