ISLAMABAD, Dec 23 (APP): Arif Habib Limited Consortium on Tuesday secured a 75 percent stake in Pakistan International Airlines Corporation Limited (PIACL) with a Rs135billion offer in the government’s high-profile privatisation, conducted through a transparent bidding process broadcast live under the supervision of the Privatisation Commission.
During the first round of the sealed-bid process, the offers submitted by Arif Habib Group and Lucky Cement exceeded the base price of Rs100 billion, at Rs115 billion and Rs101.50 billion respectively, while the Airblue consortium offered Rs26.50 billion.
In the second round of the open auction, with a base price of Rs115 billion, the highest offer received in the first round, the two consortia competed strongly, but the Arif Habib Group maintained its lead and ultimately secured the stake with an unchallenged bid of Rs135 billion.
During the bidding process, Minister for Finance and Revenue Senator Muhammad Aurangzeb addressed the gathering and congratulated the Privatisation Adviser and his team for conducting a transparent, credible and professionally managed bidding process, noting that such outcomes required sustained effort and strong institutional capacity.
He said it was particularly encouraging that all bidders were Pakistani entities, describing it as a strong signal of domestic investor confidence.
He added that the participation of leading local conglomerates and seasoned business groups in the bidding reflected trust in the government’s reform direction and the future potential of PIACL.
Aurangzeb expressed confidence that the successful bidder would restore the airline’s performance and position it competitively among international carriers.
The finance minister said the privatisation of PIACL formed part of the government’s broader structural reform agenda, including taxation, energy sector restructuring and the turnaround of state-owned enterprises.
He stressed that privatisation was not merely aimed at stemming financial losses but at enabling institutions to realise their full economic potential. He said the transparent conduct of the bidding process would encourage greater participation from both local and foreign investors across key sectors, reaffirming the Ministry of Finance’s support for the privatisation agenda.
Earlier addressing the ceremony, Adviser to the Prime Minister on Privatisation Muhammad Ali said the divestment of PIACL was a core component of the reform agenda, unlocking fresh investment and paving the way for future privatisations. He thanked the final bidders, their representatives, federal cabinet members, government officials and the media, describing the process as transparent and competitive. He also acknowledged bidders who participated in earlier stages but did not qualify for the final round.
Ali said that in April 2025, the government approved the divestment of 51–100 per cent of PIACL to maintain flexibility amid uncertain investor demand.
He said subsequent engagement with investors revealed varying preferences, with some seeking at least a 75 per cent stake and others full ownership, adding “To encourage participation, the government offered a 75 per cent stake with an option to acquire the remaining 25 per cent within 90 days.”
He explained that although bidding was conducted for 75 per cent, the transaction allowed for a 75–100 per cent acquisition. Of the proceeds, 92.5 per cent would be invested directly into PIACL, while 7.5 per cent would go to the government.
Ali stressed that the objective was not merely to sell the national carrier but to restore it to its past standing. PIACL required substantial investment for aircraft leasing, engine repairs, liability settlement and employee obligations.
Outlining the payment mechanism, he said 67 per cent of the bid would be paid at first closing within 90–120 days, with the remainder payable after one year, secured through standby letters of credit and promissory notes. He added that bidders could include up to two additional consortium partners, subject to strict eligibility criteria.