PIA privatisation gains momentum as four bidders cleared
Pakistan government approves joint venture plan for PIA-owned Roosevelt Hotel in New York
Dubai: Pakistan’s long-delayed plan to privatise its loss-making national carrier, Pakistan International Airlines (PIA), moved forward as the Privatisation Commission cleared four major bidders.
The decision marks a significant step in the government’s push to reform state-owned enterprises and attract private investment.
The four pre-qualified bidders include three business consortia and one airline operator, reflecting diverse interest in acquiring a majority stake in PIA along with management control.
Who’s in the race?
According to a statement from the Privatisation Commission, the following four bidders have been cleared:
Consortium of Lucky Cement, Hub Power Holdings, Kohat Cement, and Metro Ventures — a heavyweight industrial alliance with deep roots in cement and energy sectors.
Consortium of Arif Habib Corporation, Fatima Fertiliser Company, City Schools (Pvt) Ltd, and Lake City Holdings (Pvt) Ltd — representing a mix of financial services, real estate, education, and manufacturing.
Fauji Fertiliser Company (FFC) — owned by the Fauji Foundation and accepted as a private limited company for bidding purposes.
Airblue (Pvt) Ltd — the only airline in the list, bringing operational aviation experience to the table.
A fifth group including Serene Air, Bahria Foundation, and others failed to qualify after a review of technical and financial documentation.
What next
The shortlisted bidders will now enter the buy-side due diligence phase, a critical period during which investors assess PIA’s operations, finances, liabilities, and future prospects.
The bidding is expected to take place in the fourth quarter (October—December) of 2025, said Muhammad Ali, Adviser to the Prime Minister on Privatisation.
The government is offering 51% to 100% of PIACL’s shares, including management control. This marks Pakistan’s second attempt to privatise the airline, following a failed effort last year.
To improve investor confidence, the government has also reduced PIA’s debt burden by carving out significant liabilities from its balance sheet, a move aimed at increasing the minimum bid price, which was previously set at Rs85.03 billion despite a Rs45 billion negative equity.
Roosevelt Hotel
In a related development, the Cabinet Committee on Privatisation (CCOP), chaired by Deputy Prime Minister Ishaq Dar, approved a transaction structure for the iconic Roosevelt Hotel in New York, which is owned by PIA.
Rejecting earlier suggestions of a direct sale or long-term lease, the committee endorsed a joint venture model. Under this structure, Pakistan will contribute the land value including the 32-storey hotel building as its equity stake, without additional cash injections.
The plan, originally proposed by financial adviser Jones Lang LaSalle (JLL) a year ago, was shelved but has now been accepted. JLL has estimated the joint venture to offer the highest value to Pakistan, with future redevelopment opportunities and limited fiscal exposure.
A contribution agreement will be signed immediately, with the formal joint venture agreement expected by 2027.
Economic reforms
“These developments reflect the government’s strong commitment to its privatisation and economic reform agenda,” the Privatisation Commission said in a statement, highlighting transparency, investor confidence, and market-driven decision-making as guiding principles.
With inputs from Reuters
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