Two of the most serious contenders are reportedly keen to bring in Fauji Fertilizer as a partner.
The race to acquire Pakistan’s national airline PIA has officially entered its final stages, with some bidders seeking support from internationally recognized airlines.
The government’s renewed effort to privatize PIA comes after a failed bid last year, when only one bid was received, 10 billion rupees ($36 million) from property developer Blue World City, for a 60 percent stake. The offer, well below the government’s minimum price of 85 billion rupees ($305 million), was rejected.
The Privatization Commission reopened the process in April 2025, inviting local and international investors to express interest for a 51 to 100 percent stake.
The most serious potential buyer backed out due to outstanding loans and tax issues. However, most of these issues have now been resolved and four bidders have been pre-qualified.
Pre-qualified bidders include:
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Lucky Cement Consortium, led by Habibullah Khan and others
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Arif Habib Consortium, which includes 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 contenders; Both consortiums are reportedly keen to bring in Fauji Fertilizer as a partner.
Read: PM announces live streaming of PIA bidding process on December 23
Lucky Group is reportedly investing more time and money, while the Arif Habib Consortium has shown growing interest. Both have hired international aviation advisors: Lucky Group appointed Turkey’s Pegasus Airlines for technical consultancy, while Arif Habib hired Sibra Aviation Partners.
Following their advice, the two serious parties have requested multiple adjustments to the privatization structure and commission processes, most of which have been approved, clearing the way for the sale.
As the privatization date approaches, PIA’s 6,500 employees are increasingly worried about their future.
Read more: Privatization of PIA: four companies prequalify for the tender to acquire 75% stake
Analysts suggest that based on potential earnings and financial models prepared by the future board, the government could increase the reserve price.
Last year, PIA’s reserve was Rs 85 billion and is now expected to settle between Rs 90-100 billion as the airline has already made pre-tax profit of Rs 11 billion in the current financial year. Buyers are also optimistic about PIA revival.
Prime Minister Shehbaz Sharif announced on December 4 that the December 23 bidding process for the privatization of PIA would be broadcast live on national television, in an effort to ensure transparency.
