Arif Habib Consortium has acquired Pakistan International Airlines (PIA) for Rs135 billion in the second and final round of the auction for the privatisation of the national carrier, while the Lucky Cement Consortium emerged as the second-highest bidder with an offer of Rs134 billion.
Following the conclusion of the first round, in which two bidders, Arif Habib Consortium and Lucky Cement, offered above the government’s reference price of Rs100 billion.
Lucky Cement submitted a bid of over Rs101.5 billion and signed the record sheet. Airblue followed, with its representative announcing a bid of Rs26.5 billion aloud. The final bid came from Arif Habib Consortium, offering Rs115 billion. All bids were recorded and signed on the official sheets, with Arif Habib emerging as the highest bidder among the three.
Pakistan on Tuesday concluded the sale of a 75% stake in its national carrier, Pakistan International Airlines (PIA), to the Arif Habib consortium for Rs135 billion ($485 million), bringing to a close years of stalled efforts to privatize the loss-making airline.… pic.twitter.com/eZuc7NAAib
— Pakistan TV Digital (@PakistanTVcom) December 23, 2025
The bidding process for the privatisation of PIA intensified in the second round as competing Arif Habib Consortium and Arif Habib Consortium repeatedly raised their offers during the final round of the auction.
The Lucky Consortium initially increased its bid to Rs125 billion, prompting the Arif Habib Consortium to raise its offer to Rs126 billion. The competition continued as the Lucky Consortium enhanced its bid to Rs128 billion, while the Arif Habib Consortium responded with an offer of Rs129 billion.
The bidding process for the privatisation of PIA intensified in the second and final round as the Arif Habib Consortium and the Lucky Cement Consortium repeatedly raised their offers during a closely contested auction.
The Lucky Cement Consortium initially increased its bid to Rs125 billion, prompting the Arif Habib Consortium to counter with Rs126 billion. The contest continued as Lucky Cement raised its offer to Rs128 billion, followed by a response of Rs129 billion from Arif Habib.
The bidding war further escalated when Lucky Cement submitted a Rs130 billion offer, which was countered by Arif Habib at Rs131 billion. In the subsequent round, Lucky Cement raised its bid to Rs132 billion, while Arif Habib moved ahead with Rs133 billion.
In the final stage of the auction, the Lucky Cement Consortium submitted a bid of Rs134 billion. However, the Arif Habib Consortium outbid its rival with a final offer of Rs135 billion.
Following the conclusion of the auction process, the Arif Habib Consortium was declared the successful bidder for the acquisition of Pakistan International Airlines.
The government’s approved reference price for the 75% stake is Rs100 billion, and the first round of bidding saw competitive offers from pre-qualified bidders. An open auction will now take place to finalise the sale.
Read: All set for auction of PIA’s 75% shares today
Prime Minister’s Adviser on Privatisation and Chairman of the Privatisation Commission Muhammad Ali said the government’s objective was “not merely to sell PIA and collect money, but to turn it into a best-in-class airline.” He said the airline required fresh investment to regain its lost position, adding that the transaction structure had been revised accordingly.
Muhammad Ali said a payment schedule had been finalised under the new privatisation plan. “Two-thirds of the payment will be made upfront, while the remaining amount will be paid later,” he said, adding that “the outstanding amount has also been secured through safeguards.”
Addressing a ceremony, he said the privatisation of PIA would pave the way for privatisation of other state-owned entities. “In April, the government decided to sell 51 to 100 per cent of shares, and our aim was to attract as many bidders as possible,” he said. He added that the current bid was for a 75 per cent stake, while “the buyer will also be allowed to purchase additional shares.”
“The first phase of the bidding process has been completed; now the matter will go to the Privatisation Commission,” said Privatisation Commission (PC) Chairman Muhammad Ali. The bids came from pre-certified bidders Lucky Cement, private airline Airblue and investment firm Arif Habib. Fauji Fertiliser and other bidders have pulled out of the auction.
The PC board reviewed and approved the reference price (the minimum price of sale), the exact figure of which remains confidential. Ali said that once the reference price is approved by the board, it will be forwarded to the Cabinet Committee for final approval.
PC Board Meeting in progress: the Privatisation Commission Board is underway for determination of the reference prices a key step supporting a structured, transparent process.
https://t.co/84NmfWfgZb#PrivatisationCommission #Transparency #Governance #Privatisation #Pakistan pic.twitter.com/FFOx2YAUQW
— Ministry of Privatisation, Government of Pakistan (@PrivComPakistan) December 23, 2025
Once the Cabinet approved the reference price, the federal cabinet ratified it.
Chairman of Privatisation Commission, Muhammad Ali, has just shared a major update on the sale of PIA. The bidding process is entering its final hours!#PIA #Privatisation #Pakistan #Aviation #BusinessNews pic.twitter.com/lh1fuObsHQ
— Ministry of Privatisation, Government of Pakistan (@PrivComPakistan) December 23, 2025
As the bids exceeded the reserve price, an open auction will take place now. Once the successful bidder is identified, the bidder will have 90 days to purchase the remaining 25% of shares. The government had taken responsibility for PIA’s liabilities of Rs 654 billion last year. The investor is required to commit an investment of Rs80 billion over the next five years, and of the proceeds from the sale of 75% of PIA’s shares, 92.5% will be allocated to the airline for reinvestment, while the remaining 7.5% will be transferred to the government.
The government claims that this privatisation is crucial for the airline’s financial health and profitability. “No major privatisation of a national asset has taken place in the last 20 years, making this move historic for Pakistan,” Ali said.
Additionally, the PC has stated that employee job security will be guaranteed for one year. The holding company will be responsible for managing pension plans and post-retirement benefits.
PIA has been a target for privatisation by previous governments. The airline has struggled with mounting debts, outdated fleets, and an inability to keep pace with the competition.Latest News, Breaking News & Top News Stories | The Express TribuneShahbaz RanaRead More
