PIA Sold: Arif Habib Consortium Makes Highest Bid to Become New Airline Owner

The Arif Habib consortium has secured a 75 percent stake in Pakistan International Airlines Corporation Ltd (PIAC) with a winning bid of Rs. 135 billion, following an open auction round that marks Pakistan’s first major privatization in nearly twenty years. The auction process began Tuesday morning with pre-qualified bids from Lucky Cement, Airblue, and Arif Habib. Airblue exited after the first round, having submitted a bid of Rs. 26.5 billion, below the reference price. Lucky Cement’s initial bid stood at Rs. 101.5 billion, while Arif Habib led with Rs. 115 billion. After a 30-minute break requested by Lucky Cement, the session resumed with the reference price set at Rs. 125 billion. In the subsequent bidding, Lucky Cement raised its offer to Rs. 120.25 billion, and Arif Habib responded with Rs. 121 billion. The second round of the auction started with a base price of Rs. 115 billion, reflecting the highest bid from the first round, and required a minimum increment of Rs. 250 million for each new bid. Ultimately, the Arif Habib consortium’s Rs. 135 billion offer clinched the deal, paving the way for a new chapter in the national carrier’s history. According to officials, 92.5% of the proceeds from the sale will be reinvested, while the remaining 7.5% will be allocated to the government. Additionally, the winning consortium will have the option to add two more parties to its group after securing the stake in PIAC. The federal government will receive Rs. 10.2 billion of the money while the rest will be used on PIA. Moreover, the government is expected to save Rs. 35 billion taxpayer money every year. Finance Minister Muhammad Aurangzeb on Tuesday said the bidding process had been conducted transparently and credited the prime minister’s aide and his team for completing the process. Speaking at the bidding ceremony, he celebrated how all bidders were Pakistani and said the transaction would be positive for the country irrespective of the winning group. He noted that Pakistan’s largest conglomerates were competing for control of the national flag carrier and said the airline would be managed by investors and some of the country’s most experienced business leaders. Aurangzeb added that the objective was to stop the airline’s financial losses and restore its position in the international aviation market.