PIA Privatization: Arif Habib Consortium Wins Bid for Rs 135 Billion
Pakistan International Airlines (PIA) has taken a major step towards privatization as Arif Habib Consortium successfully won the bid to acquire 75 percent shares of the national airline for Rs 135 billion. The bidding process was held today and marked an important moment in Pakistan’s aviation and economic reforms.
The privatization process attracted strong interest from major business groups. In the third and final round of bidding, Arif Habib Consortium placed the highest bid of Rs 135 billion, narrowly surpassing Lucky Consortium, which offered Rs 134 billion. As a result, Arif Habib Consortium emerged as the winning bidder.
Earlier bidding rounds showed competitive participation. In the first round, Lucky Consortium submitted a bid of Rs 101.5 billion, while Airblue offered Rs 26.5 billion. During the same round, Arif Habib Consortium led the process with a bid of Rs 115 billion. The competition intensified in the second round, where Lucky Consortium increased its bid to Rs 120.25 billion, while Arif Habib Consortium raised its offer slightly higher to Rs 121 billion, maintaining its lead.
Speaking after the bidding process, Advisor to the Privatization Commission Muhammad Ali stated that the privatization of PIA is part of the government’s broader reform agenda. He clarified that the government’s objective is not simply to sell the national airline, but to restore it to financial strength and operational stability.
According to the Privatization Commission, 92.5 percent of the amount received from the bid will be used for the improvement of PIA. This includes strengthening operations, improving services, and helping the airline compete effectively in the regional and international aviation market. The advisor added that the government wants PIA to regain the reputation it once held in the past.
The payment structure has also been made flexible to support the transition. Officials confirmed that two-thirds of the bid amount can be paid initially, while the remaining one-third can be paid later. Additionally, bidders have been allowed to include two additional partners even after the bid, providing room for further investment and expertise.
The privatization of PIA has been closely watched due to the airline’s long-standing financial challenges. Over the years, PIA has struggled with rising costs, operational inefficiencies, and increasing competition from private airlines such as Airblue and Fly Jinnah. The government believes that private sector management and fresh investment will help improve performance and reduce the burden on public finances.
Aviation experts say the successful completion of the bidding process signals renewed investor confidence in Pakistan’s aviation sector. They believe that if managed properly, privatization can lead to better service quality, competitive airline ticket prices, and improved customer experience for passengers.
With the bidding process now completed, attention will turn to the implementation phase. The coming months will be critical in determining how effectively the new ownership structure can revive Pakistan International Airlines and position it for long-term growth.
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