The second phase of PIA Privatisation has officially started, with the Arif Habib-led consortium submitting the highest bid of Rs115 billion. The move marks a significant step in the government’s plan to privatize the national airline.
The Lucky Cement-led consortium submitted a bid of Rs101.5 billion, while the Airblue Group offered Rs26.5 billion. Officials said a reference price will soon be announced, which will determine the next steps in the privatisation process.
Privatisation Adviser Muhammad Ali highlighted the importance of PIA Privatisation as part of the government’s economic agenda. He said the move is expected to attract more investment and open new opportunities in other sectors.
Initially, the government decided to sell between 51 and 100 percent of PIA shares. This decision was later revised to the sale of 75 percent shares. Muhammad Ali also confirmed plans to sell the remaining 25 percent within 90 days.
According to the privatisation adviser, 92.5 percent of the funds raised will be reinvested into PIA, while the remaining 7.5 percent will go to the government. The plan aims to increase PIA’s fleet from 18 to 100 aircraft over time.
Payment for the 75 percent stake will be made in stages, with two-thirds expected upfront. Officials added that after this bidding, additional parties may join as investors, including other airlines forming consortia for investment purposes.
The government emphasized that the PIA Privatisation process will be transparent and competitive. Experts say this phase is crucial for the airline’s future and could transform Pakistan’s aviation sector.
In other related news also read Pakistan Fast-Tracks its Plan to Privatize PIA
The outcome of the bidding will significantly impact PIA’s operations, financial health, and international competitiveness. Stakeholders are watching closely as the privatisation moves forward.
