Arif Habib Group-led group submits highest bid in PIA privatisation

Dubai: Arif Habib Group-led consortium has emerged as the highest bidder in the privatisation of Pakistan International Airlines, submitting a bid of Rs135 billion in the final round of televised open bidding.

The Lucky Group consortium placed the second-highest bid at Rs134 billion, making the process one of the most closely contested privatisation exercises in Pakistan’s aviation sector in recent years.

The final round concluded with the Arif Habib-led group securing the leading position after consistently topping earlier bidding rounds, where it submitted offers of Rs116 billion and Rs121 billion. The government had set a reserve price of Rs100 billion for the sale.

The privatisation process attracted multiple bidders, including consortia involving Arif Habib, Fatima Fertilizer, City School and Lake City Holdings, as well as Pakistan’s private airline Airblue and the Lucky Group consortium.

Under the approved framework, the successful bidder will acquire a 75 per cent controlling stake in PIA, with the option to purchase the remaining 25 per cent from the government within a specified period. Two-thirds of the proceeds from the initial stake sale are to be paid within 90 days, with the balance payable over one year.

Officials said the transaction is designed to bring fresh private-sector investment into the airline while supporting improvements in operational performance and fleet modernisation. Of the total proceeds, a majority will be reinvested directly into PIA to strengthen its financial position.

Privatisation Commission chairman Muhammad Ali said the sale aligns with the government’s broader strategy to open new investment avenues and reform state-owned enterprises. He added that two consortia had expressed interest in acquiring either full ownership or a majority stake.

The current privatisation marks the government’s second attempt to sell PIA, following an earlier effort that did not meet pricing expectations. Since then, authorities have restructured liabilities, introduced tax exemptions on aircraft leasing, and provided regulatory protections to improve investor participation. These measures were approved as part of Pakistan’s broader economic reform programme supported by the International Monetary Fund.

The sale also includes airline-owned properties in several international locations and offers the eventual owner an option to acquire the remaining stake at a premium. Officials said the process represents a key milestone in Pakistan’s wider plan to reform and privatise selected state-owned enterprises.

The transaction is expected to proceed subject to final approvals and completion of regulatory requirements.