The government said on Tuesday it had approved four parties, including business groups and a military-backed firm, to potentially bid for a stake in debt-ridden Pakistan International Airlines.

The government has been seeking to sell a 51-100 per cent stake in the struggling national airline to raise funds and reform cash-draining, state-owned enterprises as envisaged under a $7 billion International Monetary Fund programme.

It would be the country’s first major privatisation in nearly two decades.

Among the bidding groups, one is a consortium of major industrial firms Lucky Cement, Hub Power Holdings, Kohat Cement and Metro Ventures.

Another is led by investment firm Arif Habib Corp and includes fertiliser producer Fatima Fertiliser, private education operator The City School, and real estate firm Lake City Holdings.

Additionally, Fauji Fertiliser Company, a military-backed conglomerate, and Pakistani airline Airblue have been approved to bid for PIA.

“The pre-qualified parties will now proceed to the buy-side due diligence phase,” Privatisation Minister Muhammad Ali said in a statement from his ministry.

The review process is set to last two to two-and-a-half months, with final bidding and negotiations anticipated in the fourth quarter of 2025, Ali previously told Reuters.

The privatisation ministry also said that the Cabinet Committee on Privatisation approved the transaction structure for the Roosevelt Hotel located in New York, including options for both outright sale and long-term lease.

From the Roosevelt Hotel, Pakistan is expecting over $100 million as a first payment during this year, Ali previously told Reuters.