In a landmark event for Pakistan’s aviation and investment sector, Arif Habib Group emerged victorious in the open auction for Pakistan International Airlines Corporation Ltd (PIAC) with a winning bid of Rs135 billion, concluding the country’s first major privatisation in nearly twenty years.
The auction, held in Islamabad, saw initial bids from Lucky Cement, Airblue, and the Arif Habib consortium. Airblue exited the competition after the first round, offering Rs26.5bn, below the government’s reference price of Rs100bn. Lucky Cement placed a bid of Rs101.5bn, while Arif Habib bid Rs115bn, setting the stage for the final open auction round.
During the second round, bidding intensified with minimum increments of Rs250 million. Lucky Cement raised its offer to Rs134bn, but Arif Habib countered with Rs135bn, securing the national carrier. The entire process was televised live and streamed across government social media channels.
Finance Minister Muhammad Aurangzeb hailed the transparent process, noting, “All bidders today are from Pakistan. No matter which team wins, Pakistan wins.” He expressed hope that privatisation would attract local and foreign investments while revitalising PIA under experienced business leadership.
Adviser to the Prime Minister on Privatisation, Muhammad Ali, emphasized that the transaction would involve 75% to 100% of PIA shares, structured to ensure fair returns and sustainable investment. He stressed the need for new carriers, fleet expansion, liability reduction, and timely employee payments to restore PIA’s former glory.
This auction follows the government’s second attempt at privatising PIA after last year’s effort collapsed due to low bids. Prime Minister Shehbaz Sharif commended officials for a transparent process and described it as the largest transaction in Pakistan’s history.
A unique clause ensures unsuccessful bidders will have no role in PIA’s management, while groups not part of the auction, like Fauji Fertiliser Company, retain the option to join the airline’s administration subsequently.
The successful bid by Arif Habib signals a historic shift for Pakistan’s aviation sector, promising renewed investments, improved efficiency, and a revitalised national carrier poised for global competitiveness.
