PIA privatisation: Live bidding to be held on December 23, PM Shehbaz says

Dubai Pakistan's Prime Minister Shehbaz Sharif said on Wednesday that the bidding process for Pakistan International Airlines (PIA) will take place on December 23 and that the event will be broadcast live across all media platforms, Dawn reported.

The government is seeking to sell a 51–100 per cent stake in the loss-making national carrier as part of a broader effort to reform state-owned enterprises under a $7 billion International Monetary Fund (IMF) programme. It would be Pakistan’s first major privatisation in nearly two decades.

According to Dawn, four bidders have been pre-qualified for the transaction:

A press release posted on X by state broadcaster PTV News said the prime minister chaired a meeting with corporate entities and representatives involved in the privatisation process.

“PIA’s bidding will take place on December 23, 2025, which will be broadcast live on all media,” Shehbaz Sharif was quoted as saying. He added that the process was moving forward “smoothly” to restore the airline’s “lost prestige” and align operations with modern standards.

“We are ensuring transparency and merit in the privatisation process of PIA,” he said, expressing confidence that new ownership would revive international routes and provide better services to overseas Pakistanis.

The prime minister said modernising the airline was “extremely essential” for the tourism sector, adding: “To strengthen tourism, it is essential to bring the national airline in line with contemporary demands.”

Privatisation Minister Muhammad Ali told Reuters last month: “We’re targeting Rs 86 billion in privatisation proceeds this year. For PIA, in the last round of bidding, 15 per cent of the proceeds were going to the government, with the rest staying within the company.”

Officials said renewed interest has come from local business groups — including Airblue, Lucky Cement, Arif Habib Group and Fauji Fertiliser — with final bids expected later this year.

Around 80 per cent of the airline’s debt has already been transferred to the state, sales tax on leased aircraft has been scrapped, and the airline is being offered with limited legal and tax liability to attract bidders, Geo News reported.

The prime minister said returning PIA to global operations was “extremely essential” for Pakistan’s tourism sector and urged bidders to focus on rebuilding the brand once the sale is completed.

Dawn reported that participants in the meeting “commended the professional and transparent approach adopted by the government” so far.

A parliamentary committee was informed in September that PIA was expected to be privatised by November, and on November 20 the prime minister directed authorities to accelerate the process and ensure transparency. However, the deadline was missed, prompting the National Assembly Standing Committee on Privatisation last week to seek a clear timeline and push officials to speed up the bidding phase, Dawn said.

Briefing lawmakers recently, the Privatisation Division secretary said four pre-qualified consortia are currently in the final stage of negotiations over commercial terms and that the federal cabinet will approve the reserve price, Geo News added.

The December 23 bidding date, if met, would mark a critical milestone in Pakistan’s long-delayed privatisation agenda.