A Pakistani company has emerged as the winning bidder in the auction to sell a majority stake in Pakistan International Airlines (PIA), the country’s state-owned carrier, with a bid of $482 million. The deal is being viewed as a crucial test of the government’s pledge to privatise loss-making state enterprises.
Long criticised for overstaffing and weak management, PIA is currently facing an acute cash crunch. The sale comes at a time when the Pakistani government is grappling with a severe balance-of-payments crisis.
Three Pakistani companies participated in the auction, which was broadcast live on state television. During multiple bidding rounds, representatives submitted their offers by placing them into a transparent box, underscoring the authorities’ emphasis on openness in the process.
Arif Habib Investment Group topped the auction with a bid of 135 billion Pakistani rupees for a 75 percent stake in PIA. The group will also have the option to purchase the remaining 25 percent of shares in the coming months.
At the start of the auction, Prime Minister Shehbaz Sharif said during a cabinet meeting televised live that ensuring transparency in the process was essential, as the transaction could become one of the largest in Pakistan’s history.
Other bidders included a consortium led by Lucky Cement, which offered 134 billion rupees, and private airline Air Blue, which submitted a bid of 26.5 billion rupees.
A previous attempt to privatise PIA failed last year, when only a single bid was received, valued at just $36 million—far below the government’s expected range of $300 to $305 million.
Before being delisted from the Pakistan Stock Exchange, PIA reported net losses of $437 million against revenues of $854 million in the 2022 financial year.