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Pakistan’s long-running effort to privatize Pakistan International Airlines (PIA), which formally began in April 2025, reached a decisive moment today following a bidding ceremony held at Serena Hotel in Islamabad. The event was supposed to begin at 03:30 PM, but another hour was added to finalize bids effectively.
The First Bidding Round
Three major bids were submitted for the national carrier, with the Arif Habib consortium emerging as the highest bidder at PKR 115 billion. Lucky Cement submitted a bid of PKR 101.5 billion, while Air Blue offered PKR 26.5 billion. According to the Privatization Commission, a 75% stake was offered in the bidding process. From this 75%, 92.5% of the proceeds will now go into the company, while the remaining 7.5% will go to the government.
Lucky Cement and Air Blue both groups were given additional minutes to add another bid which surpasses the one posed by Arif Habib Group. However, since Air Blue’s offer was not even 80% of the base price, they are automatically left out. The base price for the second round of the auction has been set at PKR 115 billion, with the minimum increment of PKR 250 million.
The Second Bidding Round
At 05:46 PM, the second round of the open bidding process began, with a rapid series of incremental offers between the two leading contenders. Lucky Cement opened the round with a bid of PKR 115.5 billion, followed closely by the Arif Habib consortium at PKR 116 billion. The bidding then escalated in quick succession, with Lucky raising the offer to PKR 116.25 billion and Arif Habib countering at PKR 116.5 billion. Lucky increased its bid to PKR 116.75 billion, after which Arif Habib jumped to PKR 117.5 billion.
The back-and-forth continued with Lucky at PKR 117.75 billion, Arif Habib at PKR 118 billion, Lucky at PKR 118.25 billion, and Arif Habib at PKR 119 billion. Lucky responded with PKR 119.25 billion before the Arif Habib consortium raised the bid to PKR 120 billion. The final exchanges saw Lucky offer PKR 120.25 billion, followed by Arif Habib’s highest bid of PKR 121 billion, which ultimately led Lucky Group to request a break of thirty minutes.
After a short break, the bidding resumed with the Arif Habib consortium raising the offer to PKR 126 billion, prompting a swift counter of PKR 128 billion from the Lucky group. Arif Habib then increased the bid to PKR 129 billion, followed by Lucky at PKR 130 billion. The contest intensified as Arif Habib moved to PKR 131 billion, after which Lucky responded with PKR 132 billion. Arif Habib raised the stakes again to PKR 133 billion, Lucky countered at PKR 134 billion, and the Arif Habib consortium then placed a bid of PKR 135 billion, after which Lucky Group forfeited and congratulated the other bidder.
This makes Arif Habib Consortium the winner of all bidding rounds, and they now own 75% shares of the national airlines.
PIA Privatization Bidding: What Went Down
The government confirmed that the Arif Habib–led consortium submitted the highest compliant offer and met all regulatory and financial requirements, positioning it as the winning bidder. The bidding process covered a 75% stake in PIA rather than full ownership.
Two bidders submitted offers for a 75% stake, while only one bidder expressed interest in acquiring 100% ownership. Under the transaction structure, the winning bidder also retains the option to bring in additional partners to acquire the remaining 25% stake. Until the full payment is completed and formal approvals are finalized, the government will continue to hold the shares.
Under the proposed terms, the new owner will assume management control of the airline and is expected to implement an operational turnaround plan focused on fleet modernization, route optimization, and service quality improvements. The government will retain a minority stake during a transition period, with the possibility of full divestment at a later stage.
Officials said this structure is intended to balance investor control with operational continuity during the handover.
Industry Reactions
Here is how industry leaders were reacting to the news of privatization earlier to the bidding:
The key is the reserve price of PIA
Under Rs100 billion is politically difficult decision
And
Over Rs100 billion is commercially difficult decision— Ali khizar (@AliKhizar) December 23, 2025
Whoever wins today must Ensure that Pakistan Wins and brings back PIA to its Glory, carrying the Slogan with Pride again – “Great People to Fly with”!
Great Effort by Privatisation Commission to Bring the Best Business Groups to Bid for 75 Percent ownership stake and…
— Dr Gohar Ejaz (@Gohar_Ejaz1) December 23, 2025
Earlier Efforts to Privatize PIA
The minimum expected price was set at PKR 100 billion following approval of the reference price by the Privatization Commission Board, the Cabinet Committee on Privatization, and the federal cabinet. Officials said the bids were opened publicly to ensure transparency, with Privatization Commission Chairman Muhammad Ali confirming that if more than one bid exceeded the reference price, the process could move to an open auction stage. Business leaders and analysts highlighted the stakes involved, noting that PIA has accumulated losses of around PKR 800 billion over the past 20 years and that the reserve price represented a politically and commercially sensitive balance.
The three bidding groups included consortia led by Lucky Cement, Arif Habib Corporation, and Air Blue, after the Fauji Foundation withdrew earlier from the process. Under the transaction structure, 92.5% of proceeds from the sale of the 75% stake will be reinvested into the airline, while the government will retain the remaining 25% with an option for the successful bidder to acquire it later, as part of Prime Minister Shehbaz Sharif’s IMF-linked economic reform agenda to reduce the burden of loss-making state-owned enterprises.
Who Is Arif Habib Consortium
The Arif Habib consortium is led by Arif Habib Group, one of Pakistan’s most established and diversified business groups, with deep roots in capital markets, energy, cement, real estate, and financial services. The group is best known for its long-standing role in Pakistan’s stock market ecosystem and its close involvement in large-scale privatizations, restructurings, and turnaround situations.
The consortium includes Arif Habib Corporation Limited, City Schools (Private) Limited, and Lake City Holdings (Private) Limited.
Arif Habib Group’s portfolio spans several strategic sectors. Through entities such as Arif Habib Limited and Arif Habib Corporation, the group has played a central role in equity brokerage, asset management, investment banking, and principal investments. It also has major interests in cement, energy, fertilizers, and real estate, giving it experience with capital-intensive, regulated industries similar in complexity to aviation.
The consortium also holds AKD Group, a prominent business conglomerate with a diversified portfolio, operating in key sectors of Pakistan’s economy, including financial services, real estate, and natural resources. The group is headquartered in Karachi, Pakistan, and has a growing international presence.
