ISLAMABAD- Pakistan International Airlines (PIA), the national flag carrier of Pakistan, is set for privatisation by November this year as the government moves forward with its long-awaited restructuring plan.
The Senate Standing Committee on Privatisation was informed that four qualified bidders remain in contention for acquiring Pakistan International Airlines Corporation Limited (PIACL), which operates from its hub at Jinnah International Airport, Karachi (KHI).
Photo: AP-BID Boeing 777-340/ER (cn 33780/705) Pakistan Internati… | FlickrPIA Privatisation Progress
The Privatisation Commission secretary confirmed that four groups have been shortlisted, while two applicants were disqualified for failing to meet the eligibility criteria.
The remaining bidders are required to form consortia with established airlines to ensure smooth operational management of PIA.
During the committee session, Senator Zeeshan Khanzada raised concerns over the airline’s heavy debt burden of $2.31 Billion.
In response, Senator Dr Afnan Ullah Khan suggested that PIA’s two overseas hotels could be sold to ease liabilities. Lawmakers also debated whether the government should sell profitable entities first.
According to Dawn News, the Privatisation Commission secretary argued that investors are more inclined toward profitable companies, but these firms may not remain viable indefinitely.
The government intends to conduct bidding in the fourth quarter of 2025, between October and December, offering 51% to 100% of shares along with management control. This marks the second attempt to privatise PIA after a previous effort failed last year.
Photo: By Anna Zvereva from Tallinn, Estonia – Pakistan International Airlines, AP-BLZ, Airbus A320-216, CC BY-SA 2.0, https://commons.wikimedia.org/w/index.php?curid=87326398Four Final Bidders
The four shortlisted bidders reflect diverse business backgrounds:
- Consortium of Lucky Cement, Hub Power Holdings, Kohat Cement, and Metro Ventures – a major industrial alliance with interests in energy and cement.
- Consortium of Arif Habib Corporation, Fatima Fertiliser Company, City Schools (Pvt) Ltd, and Lake City Holdings (Pvt) Ltd – covering financial services, education, real estate, and manufacturing.
- Fauji Fertiliser Company (FFC) – owned by Fauji Foundation, accepted as a private limited company for this bidding process.
- Airblue (Pvt) Ltd – the only airline bidder, bringing operational aviation expertise.
A fifth group, including Serene Air (ER) and Bahria Foundation, was disqualified after failing to meet financial and technical requirements.
Image: Pakistan International Airlines TwitterDebt, Assets, and Government Strategy
PIA’s mounting debt remains the central challenge in the privatisation process. While stakeholders differ on whether to sell profitable entities first, the government maintains that a balance must be struck between investor demand and long term economic sustainability.
The proposal to liquidate overseas assets, including hotels, has resurfaced as a potential short-term relief measure.
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