Wedoany.com Report-Dec.26, Pakistan has successfully privatized its national carrier, Pakistan International Airlines (PIA), by selling a 75% controlling stake to a private consortium led by the Arif Habib Group. The winning bid amounted to 135 billion Pakistani rupees (approximately $482 million) in a televised auction held in Islamabad.

The auction featured competitive bidding among three pre-qualified parties: the Arif Habib-led consortium, a group headed by Lucky Cement Limited, and Airblue. Airblue withdrew after the initial round, while the process advanced to an open bidding stage between the Arif Habib and Lucky Cement groups. The Arif Habib consortium ultimately secured the stake with the highest offer, surpassing the government's reference price of 100 billion rupees.

PIA, once a prominent regional airline, has faced prolonged financial difficulties, including accumulated losses and operational challenges. The privatization forms part of broader economic reforms supported by international financial institutions, aiming to improve efficiency and reduce fiscal burdens on the state.

Under the terms of the transaction, the Government of Pakistan will retain a 25% ownership stake. The majority of the bid proceeds—around 92.5%—will be reinvested directly into PIA to support fleet renewal, service enhancements, network expansion, and overall operational improvements. The remaining portion will go to the national exchequer.

The consortium includes major corporate entities such as Arif Habib Corporation Limited, Fatima Fertilizer Company Limited, City Schools (Private) Limited, and Lake City Holdings (Private) Limited. This group brings diverse expertise across sectors including fertilizers, education, and real estate.

Shahid Habib, CEO of Arif Habib Limited, said: "It's a victory for Pakistan. Our consortium will work hard and revive this to become one of best airlines in the world."

The successful bidder is required to pay 67% of the bid amount within 90 to 120 days, with the balance due one year later. Following regulatory and cabinet approvals, new management is expected to take over operations from April 2026.

The auction process was conducted transparently, with live television coverage to ensure public visibility and confidence. Earlier attempts to privatize PIA, including a failed process in 2024 that received only a low bid, had not succeeded. Recent improvements, such as the airline posting a profit and regaining access to key international markets, contributed to stronger investor interest this time.

This transaction marks Pakistan's first major privatization in nearly two decades. It signals progress in economic restructuring efforts and aims to position PIA for renewed competitiveness in the aviation sector. The privatization is expected to foster improved services, fleet modernization, and greater efficiency, benefiting passengers and supporting broader national development objectives in aviation and tourism.