ISLAMABAD: The Arif Habib consortium on Tuesday emerged as the successful bidder for Pakistan International Airlines Corporation Ltd (PIACL) after offering Rs135 billion in a competitive open auction, marking Pakistan’s first major privatisation in nearly two decades.
The bidding process began with three pre-qualified bidders — Lucky Cement, Airblue and the Arif Habib consortium. Airblue exited after the first round, submitting a bid of Rs26.5bn, below the government’s reference price of Rs100bn. In the initial round, Lucky Cement bid Rs101.5bn, while Arif Habib led with Rs115bn.
Following a short break, a second round was held with Rs115bn as the base price and a minimum increment of Rs250 million. After Lucky Cement raised its bid to Rs134bn, the Arif Habib consortium countered with Rs135bn, prompting Lucky Cement to withdraw.
Speaking after the win, Arif Habib said the privatisation would boost investment and help restore the national airline’s past glory. He announced plans to expand PIA’s fleet from 18 aircraft to 38 in the first phase and eventually to 65, subject to demand. He also assured job security for existing employees and hinted at bringing in foreign airline partners after completion of the transaction.
The live-telecast auction was hailed by the government as transparent and competitive. Prime Minister Shehbaz Sharif termed the sale a “historic day for Pakistan,” calling it a strong vote of confidence in the economy. Economists also welcomed the move as a long-overdue reform aimed at stemming losses and revitalising the struggling national carrier.
