• Arif Habib-led consortium wins controlling stake in national flag carrier
• Bidding war with Lucky Cement group witnessed after Airblue bowed out in first round
• New owners plan to expand fleet in phases, initially to 38 aircraft, then to 65
• Deal marks country’s first major privatisation deal in nearly two decades
• PM terms sale ‘historic’; Aurangzeb hails transparency of process

ISLAMABAD: A consortium led by the Arif Habib group won the auction for a controlling stake in Pakistan International Airlines Corporation Ltd (PIACL) with a bid of Rs135 billion after a competitive, televised process, marking the country’s first major privatisation in nearly two decades.

The sale, a central plank of the government’s plan to offload loss-making state-owned enterprises, drew three pre-qualified bidders: a group led by Lucky Cement, private airline Airblue and the Arif Habib-led consortium.

After sealed bids were submitted in the morning, the process moved to an open auction round in the afternoon.

In the first round of bidding, Lucky Cement offered Rs101.5bn, Airblue submitted a bid of Rs26.5bn and the Arif Habib consortium put up Rs115bn. Airblue then exited the race after its offer fell below the government’s reference price of Rs100bn, leaving the contest to the top two bidders.

Officials announced a short break to allow consultations by the remaining bidders before the auction resumed. The second round started from a base bid of Rs115bn — set at the level of the highest first-round offer — with a minimum increment of Rs250 million.

The bidding quickly turned into a tight contest. Lucky Cement raised its offer to Rs134bn, prompting an immediate counter from Arif Habib at Rs135bn. With the gap narrowed and the price pushed above its last offer, Lucky Cement withdrew and congratulated the winning consortium, bringing the auction to a close.

The entire process was broadcast live and streamed on official social media channels, with representatives of the bidders, the Privatisation Commission and government officials present at the venue.

After securing the winning bid, Arif Habib described PIA as a national institution and said the privatisation would help promote investment.

“PIA is our national institution,” he said, recalling its past reputation and praising its workforce.

He said the new owners planned to expand the airline’s fleet in phases, initially to 38 aircraft and later to 65, depending on demand. He also assured employees that the new ownership would aim to build confidence and help them realise their potential.

Finance Minister Muhammad Aurangzeb, speaking at the bidding ceremony, hailed the transparency of the bidding process.

“It takes a lot of time and effort to get to a good place where we are today,” he said.

He lauded Pakistan’s biggest conglomerates for “vying for the best airline” and said that the flag carrier would be led by investors and some of Pakistan’s most experienced busine­sspeople. “The fact that they have stepped up is a doubtless sign that anyone who is the successful bidder will take it not only to where we were, but where we need to be in the comity of nations,” Mr Aurangzeb added. The adviser to the prime minister on privatisation, Mohammad Ali, also addressed the ceremony, thanking bidders forparticipating.

He said the government wanted a competitive field to strengthen confidence in the process and claimed the privatisation would open new paths for investment. He said the government had engaged with bidders throughout the process and that variations in stake preferences were discussed during consultations.

The auction was the government’s second attempt to sell the airline after a televised bidding exercise last year collapsed when a solitary offer fell well below the government’s benchmark, derailing what would have been the first major privatisation in nearly two decades. This time, officials said, the presence of three bidders helped create genuine competition.

‘Historic day for Pakistan’

In a post on X, Prime Minister Shehbaz Sharif hailed the sale as “a historic day for Pakistan”.

“It was our firm commitment to the people of Pakistan that speedy and concrete steps would be taken to privatise loss-making state-owned enterprises that have been a burden on the economy,” the premier said.

“The successful completion of the transparent and highly competitive bidding process for the privatisation of PIA marks an important milestone in fulfilling that commitment.”

The PM added that he had always maintained that regardless of which consortium won the auction, “Pakistan would be the ultimate winner and today’s outcome fully vindicates that belief”.

Interior Minister Mohsin Naqvi also offered his congratulations on the successful privatisation of PIA.

He also extended felicitations to Adviser on Privatisa­tion Mohammad Ali and his team, the prime minister and those who “secured PIA”.

The Ministry of Privatis­ation also congratulated the consortium for winning the auction.

Defence Minister Khawaja Asif also took to X to celebrate the sale, calling it a “growing vote of confidence in the national economy”.

Mr Asif added that Europe and the UK lifting bans on PIA’s operations was a major contributor to the success of today’s deal.

Cabinet meeting

Separately, Prime Minister Shehbaz Sharif, while addressing a meeting of the federal cabinet, thanked government officials and the Privatisation Commission for their role in the national carrier’s privatisation.

He stressed that the process has been made “transparent”, stating that it will be the “largest transaction” ever in Pakistan’s history.

The PIA privatisation has been closely watched by investors and lenders, including the International Monetary Fund, which has urged Pakistan to reduce fiscal pressures by restructuring or divesting state-owned firms that drain public resources.

Khaqan Najeeb, an economist and policy expert, hailed the privatisation as a “sought-after” micro-economic reform that “must take place”.

“It is a very good start that after 19 to 20 years, we have successfully privatised a major institution,” Mr Najeed told Geo News.

Syed Irfan Raza in Islamabad also contributed to this report

Published in Dawn, December 24th, 2025