The Arif Habib consortium has secured a 75% stake in Pakistan International Airlines (PIA) with a winning bid of Rs. 135 billion. This marks Pakistan’s first major airline privatization in nearly two decades.
The auction began Tuesday morning with pre-qualified bids from Lucky Cement, Airblue, and Arif Habib. Airblue exited the bidding early with an offer of Rs. 26.5 billion, below the reference price. Lucky Cement submitted an initial bid of Rs. 101.5 billion, while Arif Habib led with Rs. 115 billion.
After a short break requested by Lucky Cement, the auction resumed with a reference price of Rs. 125 billion. Lucky Cement increased its bid to Rs. 120.25 billion, but Arif Habib responded with Rs. 121 billion.
In the second round, the base price was set at Rs. 115 billion, with a minimum increment of Rs. 250 million for each new bid. The bidding continued competitively until the Arif Habib consortium raised its offer to Rs. 135 billion, winning the deal.
Officials said this privatization will open a new chapter in PIA’s history. The sale is expected to bring in fresh investment, modernize the airline’s fleet, and improve operational efficiency. Analysts believe the Arif Habib consortium’s participation demonstrates growing investor confidence in Pakistan’s privatization program.
The government has emphasized that privatization of PIA is a key step toward economic reforms. Arif Habib’s acquisition is expected to attract further investment and enhance Pakistan’s aviation sector.
In other related news also read PIA Privatization Nears Final Stage as Bids Prepared
With the completion of this deal, the Arif Habib consortium now holds a majority stake in the national carrier. The move is seen as a major milestone in Pakistan’s broader efforts to encourage private sector participation in key industries.
