In a landmark auction on December 23, 2025, the Arif Habib consortium emerged victorious in the privatisation of Pakistan International Airlines (PIA), securing the national flag carrier with a final bid of Rs135 billion. The transparent process, live-telecast from Islamabad, marked Pakistan’s largest privatisation transaction in nearly two decades and the second attempt after a failed bid last year.
Intense Bidding Rounds Seal Historic Deal
Three pre-qualified bidders participated: the Arif Habib consortium, Lucky Cement, and Airblue. Initial sealed bids were Rs115 billion (Arif Habib), Rs101.5 billion (Lucky Cement), and Rs26.5 billion (Airblue). Airblue withdrew early as its offer fell below the Rs100 billion reference price.
In the second round, Lucky Cement raised its bid to Rs134 billion, but Arif Habib countered with Rs135 billion, prompting Lucky Cement to concede. The government offered at least 75% stakes, with the winner having 90 days to acquire the remaining 25%.
Government Hails Transparent Process and Future Prospects
Finance Minister Muhammad Aurangzeb praised the all-Pakistani bidders, stating the sale would “stop the bleeding” of losses and position PIA globally. Privatisation Adviser Muhammad Ali emphasised the need for investment to expand the fleet from 18 aircraft and restore the airline’s former glory.
Prime Minister Shehbaz Sharif highlighted the process’s transparency, with sealed envelopes and live streaming. Unsuccessful bidders are barred from future management roles. The deal aims to attract further local and foreign investment, turning PIA from a liability into a competitive carrier.