Pakistan sells national carrier PIA for PKR 13,500 crore in open auction

Pakistan sold 75% of its national carrier, PIA, for PKR 13,500 crore in a televised auction, with Arif Habib Corp emerging as the highest bidder

The Pakistan government on Tuesday sold its national carrier, Pakistan International Airlines Corporation Ltd (PIACL), at a valuation of PKR 13,500 crore through a competitive, televised auction, marking its first major privatisation in nearly two decades.

 

The sale followed a two-round bidding process overseen by the Privatisation Commission Board, with Arif Habib Corp emerging as the highest bidder after open competition among pre-qualified local bidders, according to Dawn. The government’s reference price for the transaction had been set at PKR 10,000 crore.

 

Three bids were submitted in sealed envelopes at the beginning, before the process shifted to an open auction. The highest offer in the first round stood at PKR 11,500 crore, after which officials raised the base price for the second round to PKR 12,500 crore.

How was the PIA auction conducted?

The live bidding session was broadcast on television and streamed on government social media platforms as part of efforts to demonstrate transparency, the report added.

 

The auction offers 75 per cent of PIACL’s shares, with bidders given the option to acquire the remaining 25 per cent within 90 days. Adviser to the prime minister on privatisation, Muhammad Ali, said the structure was designed to balance fair value for the state with fresh investment.

 

Why does Pakistan see privatisation as critical for PIA?

He added that the government did not just want to sell PIA but "to bring the national airline back to the glory it enjoyed in the past".

 

"If we want to expand the fleet from 18 planes to 30–40 or more, then investment is the only way," he said.

 

Adding to it, Pakistan's Finance Minister Muhammad Aurangzeb said, "All of the bidders today are from Pakistan. I used to say that no matter which team wins, Pakistan would win".

 

“We need to stop the bleeding and losses, but more importantly, our institutions need to be part of the comity of nations, and we will take them there,” he added.

 

What happens next after the PIA sale?

Aurangzeb also expressed hope that the bidding would attract more local investors, which could, in turn, encourage greater participation from foreign investors.

 

The auction marks Pakistan’s second attempt to privatise PIA after a televised sale last year failed to attract bids meeting the government’s valuation threshold.

 

Under the auction’s rules, unsuccessful bidders will not be allowed to participate in the airline’s future management, a provision officials said was intended to avoid conflicts of interest and ensure clear ownership control.