ISLAMABAD: GoP’s Ministry of Privatisation took to the X to congratulate the winning Consortium for the PIA bid, led by Arif Habib Ltd here on Tuesday (23rd Dec, 2025).
According to details Arif Habib–led consortium submitted the highest bid of Rs.135 billion for 75% shares of PIA, surpassing the government’s reserved price of 100 billion. PIA will be managed from April, 2026 by the Consortium (that includes Fatima Fertiliser, City Schools, andLake City Holdings. Fauji Fertiliser (that did not bid for the acquisition of PIA) might join it.
Commenting on the development, Finance Minister said: “It takes a lot of time and effort to get to a good place where we are today. All of the bidders today are from Pakistan. I used to say that no matter which team wins, Pakistan would win. The fact that they have stepped up is a doubtless sign that anyone who is the successful bidder will take it not only to where we were, but where we need to be in the comity of nations…
“We need to stop the bleeding and losses, but more importantly, our institutions need to be part of the comity of nations, and we will take them there. The government, through the privatisation of business entities under state custody, will not only save itself from losses in the thousands of billions but also accelerate the process of economic recovery,” the Finance Minister added.
It is pertinent to mention here that the bids received earlier was ridiculously low: The sole bidder Blue World City (a real-estate development company – with no experience of running an airline) offered Rs. 10 billion for 60% stake in PIA on 31st Oct, 2024, though GoP had set a minimum price of Rs. 85 billion.
The consortium had been given time to review the bid, savants at the helm of affairs were of the view that due to illogical prerequisites (such as condition of not sacking the redundant staff etc) genuine bidders distanced themselves from the process.
Though six bidders (Fly Jinnah, a consortium led by YB Holdings (Pvt) Ltd, Airblue Ltd, a consortium led by Pak Ethanol (Pvt) Ltd, Arif Habib Corporation Ltd, and Blue World City) qualified, only Blue World City submitted the earnest in order to participate in the process.
Blue World City also confirmed that only it had submitted the earnest money. The successful bidder was supposed to be eligible to acquire management control and between 51% to 100% share capital.
It may be recalled that following a meeting of Privatisation Commission Board of Pakistan held on 20th Sept, 2024 it was announced that PIA would be auctioned on 1st Oct, 2024.
PIA, that survived only because of repeated bailout packages provided by the government, yet had to repay a debt of $2.9 billion.
Earlier, Secretary of the Privatisation Commission too had told the Senate Standing Committee that denationalisation of PIA process would be completed by 1st Oct, 2024.
PIA’s BoD during its 83rd meeting held on 26th March, had approved the privatization and restructuring plan of Pakistan’s National Flag Carrier.
Caretaker government had engaged a global financial advisory firm Ernst & Young that managed to prepare a plan apropos PIA. Moreover, IMF too had advised Pakistan to get rid of loss-making entities enabling the bleeding economy to revive.
Newspakistan.tv
