Two of the most serious contenders are reportedly willing to bring Fauji Fertilizer on board as a partner
The race to acquire Pakistan’s national carrier, PIA, has officially entered its final phase, with some bidders seeking support from internationally recognized airlines.
The government’s renewed push to privatize PIA comes after a failed bid last year in which only one offer, Rs10 billion ($36 million) from property developer Blue World City, was received for a 60 percent stake. The offer, well below the government’s floor price of Rs85 billion ($305m), was rejected.
The Privatization Commission reopened the process in April 2025, inviting expressions of interest for a 51 to 100 percent stake from both local and international investors.
The most serious potential buyer pulled out due to outstanding loans and tax issues. However, most of these issues have now been addressed and four tenderers have been pre-qualified.
The pre-qualified bidders include:
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Lucky Cement Consortium, headed by Habibullah Khan and others
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Arif Habib Consortium including Fatima Fertilizer and others
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Fauji Fertilizer and Air Blue, whose position remains less clear
The first two consortia are considered the most serious candidates; both consortia are reportedly willing to bring Fauji Fertilizer on board as a partner.
Read: PM announces live telecast of PIA bidding process on December 23
Lucky Group is reportedly investing more time and money, while Arif Habib Consortium has shown increasing interest. Both have engaged international aviation advisers: Lucky Group appointed Turkey’s Pegasus Airlines for technical advice, while Arif Habib brought in Sibra Aviation Partners.
Following their advice, the two serious parties have requested several adjustments to the privatization structure and commission processes, most of which have been approved, paving the way for the sale.
As the privatization date nears, PIA’s 6,500 employees have reportedly become increasingly worried about their future.
Read more: PIA privatisation: Four firms prequalify to bid to acquire 75% stake
Analysts suggest that the government, based on the potential profits and financial models prepared by the incoming board, may raise the reserve price.
Last year, PIA’s reserve was Rs85 billion and it is now expected to be set between Rs90 and Rs100 billion as the airline has already earned Rs11 billion before tax in the current financial year. Buyers are also optimistic about reviving PIA.
Prime Minister Shehbaz Sharif announced on 4 December that the tender process on 23 December for the privatization of PIA would be broadcast live on national television in an effort to ensure transparency.
