ISLAMABAD – Pakistan’s loss making state-owned entity PIA was once a symbol of national pride and but is now a burden on public finances and is back on auction block, and big guns are flocking together to get a chunk amid privatization push.
In a dramatic turn of events, five heavyweight bidders have thrown their hats into the ring as government received Statements of Qualification from five parties for majority stake in Pakistan’s national air carrier.
The government’s latest push to privatise struggling national carrier gained traction as the government is offering between 51% and 100% of the shareholding in PIA as part of its broader economic reform strategy.
Interested Parties
| Group | Members |
|---|---|
| Consortium 1 | Lucky Cement Limited, Hub Power Holdings Limited, Kohat Cement Company Limited, Metro Ventures (Pvt) Ltd |
| Consortium 2 | Arif Habib Corporation Limited, Fatima Fertilizer Company Limited, City Schools (Pvt) Ltd, Lake City Holdings (Pvt) Ltd |
| Fauji Fertilizer Company Limited | — |
| Air Blue | — |
| Consortium 3 (Led by Augment Securities & Investments Pvt Ltd) | Serene Air (Pvt) Ltd, Bahria Foundation, Mega C&S Holding, Equitas Capital LLC |
The Statements of Qualification will now undergo prequalification evaluation. Shortlisted parties will then be granted access to a virtual data room for due diligence as the process moves to the next phase.
The government had initially invited fresh Expressions of Interest (EOIs) in April this year and extended the deadline from June 3 to June 19 without altering the terms. This marks a second attempt to offload the debt-ridden airline, after a failed bid last year saw only one proposal—well below the government’s expectations.
PIA Privatisation
Earlier this year, Pakistan launched third attempt to privatize its national airline, Pakistan International Airlines (PIA), after two previous efforts failed due to low investor interest and financial concerns.
This government was also offering full management control, along with new incentives such as tax exemptions on aircraft, financial support, and legal protections.
To make PIA more attractive, the government significantly reduced its liabilities from Rs 864 billion to Rs 190 billion by transferring debt and non-core assets to a new holding company. The goal is to complete the privatization by December 2025.
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