Arif Habib-led consortium win bidding of Pakistan International Airlines (PIA), securing the deal for Rs135 billion in major milestone in government’s ongoing efforts to restructure and privatize the loss-making national carrier.
The consortium secured 75 percent shares of the national airline after submitting the highest bid of Rs135 billion in the third phase of the privatization bidding process.
In the first phase of bidding, the Lucky Consortium offered Rs101.5 billion, while Airblue submitted a bid of Rs26.5 billion. The Arif Habib Consortium had earlier placed the highest bid of Rs115 billion.
During the second phase, Lucky Consortium raised its bid to Rs120.25 billion, while Arif Habib Consortium increased its offer to Rs121 billion.
According to officials, the successful bidder will be given 90 days to purchase the remaining 25 percent shares. PIA’s total assets are estimated between Rs150 billion and Rs190 billion. The airline currently owns 34 aircraft, of which 18 are operational and 16 are grounded.
Officials said PIA operates around 70 flights daily, including 45 international and 25 domestic flights. At present, the airline is active on 18 international and 13 domestic routes.
PIA has around 9,500 employees, and the new owner will be required to provide job protection to employees for one year. The airline’s daily revenue ranges between Rs600 million and Rs800 million, while its total revenue from January to June 2025 stood at Rs112 billion.
Under the privatization terms, the successful buyer will be exempt from paying sales tax on the purchase of new aircraft. The buyer will also not be responsible for PIA’s outstanding dues to the Federal Board of Revenue and aviation authorities. PIA currently owes Rs26 billion to the FBR and Rs7 billion in aviation-related dues.
