ISLAMABAD: The Arif Habib-led consortium has won the Pakistan International Airlines (PIA) privatisation, securing a 75 per cent stake with a winning bid of Rs 135 billion (~USD 482 million) in a fiercely contested televised open auction.
PIA, Pakistan’s national flag carrier, has a net worth of ~Rs 150 billion (~USD 535 million). Its assets include 30+ aircraft, extensive ground handling infrastructure, and cargo facilities, with liabilities of approximately Rs 120 billion (~USD 428 million).
According to Pakistan’s Privatisation Commission, the victory marks a historic milestone in Pakistan’s state-owned enterprise reform programme.
A live telecast process began on Tuesday morning with the receipt of sealed bids from three qualified consortia vying for the opportunity.
The participants included Airblue, the largest private sector airline in Pakistan; the Lucky Cement-led Consortium; and the winning Arif Habib-led Consortium. The fourth contender Fouji Foundation, had already withdrawn from the race a day earlier.
According to the Privatisation Commission, the Foundation can join the successful bidder after getting out of the race.
The second round of open auction followed the first-round of sealed bids, where Arif Habib led with Rs 115 billion (~USD 410 million), Lucky Cement bid Rs 101.5 billion (~USD 362 million), and Air Blue bid Rs 26.5 billion (~USD 95 million).
عارف حبیب گروپ نے 135 ارب روپے میں پی آئی اے خرید لی pic.twitter.com/CcTSzMptXM
— WE News (@WENewsPk) December 23, 2025
According to Syed Muhammad Ali, the Prime Minister’s Advisor on Privatisation, the government had set a minimum reference price of Rs 100 billion (~USD 357 million).
For the open auction, the base price was the highest bid in the sealed envelopes, and that was Rs 115 from the Arif Habib-led consortium. The bidders coming up with bids above the reference price were allowed to compete in the open auction.
Plans to expand PIA fleet to 65 aircraft
The Arif Habib Corporation Limited-led consortium announced a phased expansion of PIA’s fleet, with plans to increase the number of aircraft to 38 in the first phase, followed by an expansion to 65 aircraft in the next phase, as part of its post-privatisation strategy.
Later, in an interview with Aaj News, Arif Habib, the head of the Arif Habib Group, pledged that reviving PIA will be the consortium’s top priority, expressing hope that Fauji Fertilizer will join them in this effort.
Arif Habib said his consortium has emerged as the successful bidder for PIA and includes a “very strong” team of partners.
He added that the group has a track record of acquiring and successfully turning around several companies and intends to apply the same strategy to PIA.
Arif Habib vows to make PIA profitable
A significant portion of the bid amount, Arif Habib said, will be directly invested into the airline to improve operational performance and financial health.
“PIA’s employees are our most important asset. We consider them our stars, and with their support, we will make the airline profitable again,” he emphasised.
The Arif Habib Group chief also highlighted plans to create a better working environment within PIA and provide additional facilities to staff.
“Without growth, such a large investment has no value. Therefore, the development of the airline is essential,” he said.
Addressing questions about assets, he clarified that while PIA does hold some properties, most assets are not included in the sale.
Recalling PIA’s former glory, he said, “There was a time when PIA was considered the second-best airline in the world. Our goal is to restore it to that position.”
Televised Bidding Highlights:
The open auction escalated quickly, with the two top consortia exchanging multiple rounds of bids:
- Lucky Cement initiated at Rs 115.25 billion, countered by Arif Habib at Rs 115.5 billion
- Successive increments: Rs 115.75/116, 116.25/116.5, 116.75/117.5, 117.75/118, 118.25/119, 119.25/120, 120.25/121. Lucky sought a 30-minute break.
- After Rs 125 billion, increments continued by Rs 1 billion from each side: 126/127, 127/128, 128/129, 129/130, 130/131, 131/132, 132/133, 133/134, 134/135 (Rs billion)
- Lucky Cement requested a half-hour break midway
- Final competitive rounds concluded with Arif Habib securing Rs 135 billion, surpassing Lucky Cement’s last bid of Rs 134 billion.
The airline holds roughly 40 per cent of the domestic passenger market and operates 50+ international slots across Europe, the Middle East, and Asia.
Stock Performance:
PIA Holding Company Ltd, listed on the Pakistan Stock Exchange, recently traded in the mid-40 PKR range per share, a substantial increase from single digits over the past year.
The airline posted its first annual net profit in over two decades in FY 2024 (~Rs 26.2 billion / USD 33 million) and a pre-tax profit of Rs 11.5 billion (~USD 40.6 million) with net profit of Rs 6.8 billion in H1 2025, reflecting operational improvements and restored international routes.
Privatisation Significance:
Analysts note that the sale:
- Reduces fiscal liabilities for the government
- Introduces private sector efficiency into airline operations
- Enhances investor confidence for future state-owned enterprise divestments
Officials emphasised that the transparent, televised auction ensured fair valuation of PIA’s assets, including international operating rights and strategic slots. The government will closely monitor the transition to ensure a smooth management handover and operational turnaround.
