If this succeeds, Pakistan gets:
-
Lower fiscal hemorrhage
-
Better service
-
A template for other SOEs
-
A signal to markets that reform isn’t cosmetic
If it fails—again—it won’t be because privatization is wrong.
It’ll be because delay always costs more than reform.
The bids opened at 4:00 PM today. In the second round of PIA privatization bidding on December 23, 2025, three consortia submitted offers for a 75% stake in Pakistan International Airlines (PIACL):
- Arif Habib consortium (led by Arif Habib Corporation, including Fatima Fertilizer, City Schools, and Lake City Holdings): Rs 115 billion
- Lucky Cement consortium (led by Lucky Cement, including Hub Power Holdings, Kohat Cement, and Metro Ventures): Rs 101.5 billion
- Airblue (solo bidder): Rs 26-26.5 billion
The government’s reserve/reference price was approximately Rs 100 billion (reports indicate bids above Rs 100 billion triggered a second open auction round, with Arif Habib emerging highest in the initial sealed bids).
Payment and equity structure (as per the transaction framework):
- Of the proceeds from the 75% stake sale, 92.5% is reinvested directly into PIA for revival (fleet expansion, operations, etc.), while only 7.5% goes to the government treasury.
- The winning bidder must commit additional investment (around Rs 80 billion over 5 years) for modernization.
- The government retains a 25% stake initially, but the buyer has an option to acquire it later (within 90-120 days or up to 1 year, potentially at a 12-15% premium, sometimes against security/collateral).
- This deferred option and high reinvestment ratio protect government interests by ensuring most funds stay in the airline rather than draining public coffers, while giving the buyer time to assess and secure full control.
- Minimum increment is going to 250 Million
The process was televised for transparency, marking a successful restart after the 2024 failure. Arif Habib was reported as the frontrunner/highest bidder post-initial round, with potential for further open bidding if multiple qualified offers exceeded the reserve.
