Pakistan sells national carrier for $ 483 m

Thursday, 25 December 2025 00:26 - - {{hitsCtrl.values.hits}}

Pakistani Govt. offers 75% stake in PIA with option for investor to purchase balance 25% within 90 days
92.5% of sales proceeds of 75% stake to be ploughed back into airline, 7.5% to Govt. coffers
Successful investor required to invest additional PKR 80 b within five years
Investment firm Arif Habib emerges as top bidder at PKR 135 b ($ 583 m)

Pakistan on Tuesday successfully organised the privatisation process of the national flag carrier, selling it at PKR 135 billion (approx. $ 483 million) to a consortium led by a local investment company.

The ceremony to privatise Pakistan International Airlines (PIA) was held in Islamabad, where all three pre-qualified parties, including Lucky Cement, private airline Airblue, and investment firm Arif Habib, deposited their sealed bids into a transparent box.

The bids were opened in the second phase of the ceremony, where Arif Habib emerged the highest bidder, offering PKR 115 billion, followed by Lucky Cement with PKR 105.5 billion, and Airblue with PKR 26.5 billion to buy the airline, according to The Economic Times.

After the bid had been opened, the Government announced that the reference price was Rs. 100 billion. Under the rules, the two highest bidders were offered the opportunity to compete in the opening auction process.

The Pakistani Government was initially offering 75% stakes, but the successful bidder would have 90 days to purchase the remaining 25% shares.

According to the rules, 92.5% of the sale proceeds from the sale of the initial 75% shares of PIA will be allocated to the airline for reinvestment, while the remaining 7.5% will be transferred to the Government.

The investor will also be required to commit an investment of PKR 80 billion over the next five years.