PIA Privatization Attracts Three Bidders in Live Auction Process

This is a developing story that TechJuice is updating as new information is received.

Three bids have been formally received for the privatization of Pakistan International Airlines, marking a critical milestone in the government’s long running effort to offload the national carrier and reduce the fiscal burden of loss making state owned enterprises. The receipt of multiple bids confirms investor participation in a process that has stalled repeatedly in the past and places the PIA privatization at its most advanced stage in years.

The three bidders are: a consortium comprising Lucky Cement Limited, Hub Power Holdings Lim­ited, Kohat Cement Com­pany Limited, and Metro Ventures (Private) Limi­ted; a consortium comprising Arif Habib Corporation Limited, Fatima Fertilizer Company Limited (since redacted), City Schools (Private) Limited, and Lake City Holdings (Private) Limited; and Air Blue (Private) Ltd.

According to Privatization Advisor Muhammad Ali, the first phase of the bidding process has now been completed and the matter will move to the Privatization Commission Board for review. He described the development as a significant step, noting that no major privatization has taken place in Pakistan in the last two decades, underscoring the scale and political importance of the transaction.

The next phase will focus on evaluating the reserve price for PIA’s sale. Muhammad Ali said the Privatization Commission Board will review and approve the proposed reserve price before forwarding it to the Cabinet Committee on Privatization for final clearance. He emphasized that the reserve price remains confidential at this stage, stating that no one outside the approved process currently knows the valuation threshold set for the airline’s privatization.

Once cleared by the board, the reserve price will be submitted to the cabinet committee, which will make the final decision on whether the transaction can proceed under the proposed terms. Only after that approval will the government be in a position to move forward with concluding the sale.

The bids were submitted by pre qualified parties after months of due diligence, restructuring, and revisions to the transaction framework aimed at making the airline more attractive to private investors. The government has positioned the PIA privatization as a cornerstone of its economic reform agenda, particularly under commitments tied to fiscal stabilization and international financing programs.

Authorities absorbed significant legacy liabilities and restructured parts of the airline’s balance sheet ahead of the bidding process, steps widely seen as necessary to attract credible bidders. While these measures reduced financial risk for potential buyers, they also shifted long term obligations back onto the state, highlighting the political sensitivity surrounding the deal.

With three bids now received, attention turns to reserve price approval, cabinet clearance, and final evaluation. The outcome will determine whether PIA’s privatization moves from intent to execution, in what officials describe as one of the most consequential state asset sales in decades.