Arif Habib Consortium Acquires 75% Stake in PIA for Rs135 Billion
Pakistan’s national airline, Pakistan International Airlines (PIA), has been privatized after the Arif Habib Consortium successfully acquired a 75 percent stake for Rs135 billion during a bidding ceremony organized by the Privatization Commission.
The auction witnessed intense competition between the Arif Habib Consortium and the Lucky Consortium, with bidding conducted in three rounds. In the initial round, Arif Habib Consortium offered Rs115 billion, while Lucky Consortium submitted a bid of Rs101.5 billion.
In the second round, the bidding price reached Rs121 billion, following which Federal Minister for Finance, Senator Muhammad Aurangzeb, addressed the ceremony.
During the third and final round, both consortia significantly raised their bids. When the offer reached Rs135 billion, the Lucky Consortium withdrew and congratulated the Arif Habib Consortium on winning the bid.
Privatization Commission Adviser Muhammad Ali attended the event as chief guest. Speaking on the occasion, he said that the privatization of PIA would help attract investment into the country and reaffirmed the government’s commitment to restoring the national airline to its former strength.
He explained that the government had decided to privatize between 51 percent and 100 percent of PIA’s shares, noting that several bidders had expressed interest in acquiring a 75 percent stake. Accordingly, the bidding was held for 75 percent of the shares, while the remaining 25 percent can be transacted within the next 90 days.
Muhammad Ali further stated that two-thirds of the payment would be made upfront, with the remaining one-third payable at a later stage. He added that bidders were also allowed to induct up to two additional parties after the bidding process.
According to the Privatization Commission, 92.5 percent of the proceeds from the sale will be utilized for the improvement and restructuring of PIA.
