The Arif Habib Consortium has officially acquired Pakistan International Airlines after winning the privatization bid with an offer of Rs135 billion, according to reports. The consortium secured a 75 percent stake in the national flag carrier, narrowly surpassing the Lucky Consortium, which submitted a final bid of Rs134 billion. Under the terms of the agreement, the government will receive Rs10.2 billion in immediate cash, while the transaction is expected to reduce the fiscal burden on taxpayers by nearly Rs35 billion annually through savings in subsidies and operational expenses.
This development marks Pakistan’s first major large-scale privatization in nearly two decades and represents a key step in the government’s broader economic reform strategy focused on restructuring loss-making state-owned enterprises. Analysts view the successful sale as a positive signal for Pakistan’s investment environment, reflecting renewed investor confidence and interest in strategic assets.
The privatization process saw strong competition from multiple bidders. In the initial phase, a consortium led by Arif Habib Corporation Limited, with partners including Fatima Fertiliser Company Limited, City Schools, and Lake City Holdings, offered Rs115 billion. The Lucky Group consortium, comprising Lucky Cement Limited, Hub Power Holdings Limited, Kohat Cement Company Limited, and Metro Ventures, submitted a bid of Rs101 billion, while Air Blue placed the lowest offer at Rs26.5 billion. The Privatisation Commission Board reviewed the bids and set the reserve price at Rs100 billion, leading to a final round of open bidding between the Arif Habib Group and the Lucky Group.
Adviser to the Prime Minister on Privatization Muhammad Ali described the outcome as a major milestone, noting that Pakistan had not completed a large-scale privatization in the past 20 years. Authorities emphasized transparency throughout the process, with all bidding stages broadcast live on television and streamed through official digital platforms.
The privatization aligns with Prime Minister Shehbaz Sharif’s economic reform agenda, which aims to improve efficiency, governance, and financial sustainability across state-owned enterprises. Officials believe private ownership will help PIA enhance operational performance, strengthen its financial position, and gradually restore its reputation as the country’s flagship airline.
An earlier attempt to privatize PIA last year failed after the government set a minimum price of $305 million for a 60 percent stake, but received only one bid of $36 million, which was later withdrawn due to financial and operational concerns. With the latest bidding process concluded, the Arif Habib Group is now expected to spearhead efforts to revive the airline, marking a significant moment in Pakistan’s ongoing privatization drive.
