Islamabad: Pakistan launched PIA Bidding process for the privatisation of Pakistan International Airlines (PIA), Arif Habib group emerged as the top bidder with Rs135 billion, Lucky Consortium bid on Rs134 billion while air blue group placed lowest bid of Rs26.5 billion marking a key step in the government’s broader reform agenda aimed at reviving loss-making state-owned enterprises.
The development follows approvals granted by the federal cabinet’s committee overseeing the national carrier’s privatisation.
Arif Habib Group acquires PIA
The Arif Habib Group has emerged as the successful bidder for Pakistan International Airlines, securing control of the loss-making national carrier after a closely contested privatisation process. The acquisition follows intense competition among potential investors such as Lucky group of companies, and marks a major milestone in the government’s push to reform state-owned enterprises, attract private capital and revive PIA’s operations after years of financial strain and operational challenges.
Cabinet committee endorses earlier decisions
The cabinet committee on PIA privatisation met in Islamabad and formally endorsed decisions taken earlier by the Privatisation Commission, clearing the way for the next phase of the process.
Officials said the move signals the government’s commitment to advancing structural reforms amid pressure to improve fiscal discipline and attract private capital.
Privatisation part of reform agenda
Privatisation Commission Chairman Muhammad Ali said the national airline’s privatisation forms a central pillar of Pakistan’s economic reform program.
However, he stressed that the government’s objective is not merely to sell the airline but to place it on a sustainable financial footing.
“The government wants to see an airline that performs better than it has in the past,” Ali said.
Investment inflows expected
Ali said the privatisation process is expected to bring fresh investment into the country, improve operational efficiency and help modernise the airline’s fleet and services.
He added that private sector participation could restore confidence in Pakistan’s aviation sector, which has struggled with financial losses and governance challenges for years.
Auction of majority stake planned
Meanwhile, Muhammad Ali confirmed that bidding will be held for a 75% stake in the national airline, giving the winning investor management control.
The government believes majority ownership by a strategic investor will help transform PIA into a competitive and commercially viable carrier, officials said.
The bid-opening process comes as Pakistan seeks to stabilise its economy and signal progress on long-delayed reforms to international lenders and investors.
