The government is going to make second attempt to privatize the country’s state run national flag carrier Pakistan International Airlines (PIA) today.
The bid process will start at 11 am which will continue till 3 Pm on Wednesday.
The government had made first attempt to privatize the PIA in late-October 2024. During that bidding round, Blue World City consortium had submitted an offer of Rs 10 billion (about $36 million) to buy a 60 % stake in the airline.
This offer was far below the government’s minimum reserve price of Rs 85 billion which was set for that sale round. The bid was rejected by the government which was was deemed too low.
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That Rs 10 billion bid was quoted as the first and only bid in that earlier privatization attempt. In the current (2025) privatization process, the three parties had submitted which included the Lucky Cement consortium, followed by bids from AirBlue and an Arif Habib-linked group.
Pakistan International Airlines privatization bids are officially being opened as the government is going to hold t a televised bidding process for a 75 % stake in the national flag carrier, marking a key milestone in its long-delayed privatization plan.
Officials from the Privatization Commission of Pakistan had confirmed that pre-qualified bidders were submitting sealed offers. The formal opening ceremony scheduled for 3:30 p.m. that will be broadcast live on TV and digital platforms.
This process is part of the government’s push under Prime Minister Shehbaz Sharif’s economic reform agenda. It is aimed at reducing the financial burden of the loss-making airline and increase operational efficiency.
Only three consortiums remain in contention after the Fauji Fertilizer Company Ltd had withdrawn from the race shortly before the process began. These groups include bidders led by Lucky Cement, Arif Habib Corporation and Airblue, according to official reports.
The government has said the reference price for the transaction will be set by the Privatization Commission Board which will be approved by the Cabinet Committee on Privatization only after receiving the bids.
This privatization drive follows a failed attempt in late 2024 when a single lowball bid was rejected due to low price offered by the bidder. The current sale is considered the most serious effort yet to transfer management control of PIA to the private sector.
Market watchers, aviation analysts, and industry stakeholders are closely watching outcomes today, as the bids and eventual successful investor could shape the future of Pakistan’s national airline and influence confidence in further state-owned enterprise reform.
Privatization Advisor Muhammad Ali said that the first phase of the bidding process has been completed; now the matter will go to the Privatization Commission (PC) Board.
He said that the PC Board will review PIA’s reserve price — Privatization Advisor Muhammad Ali.
No one knows the reserve price for PIA’s privatization — Privatization Advisor Muhammad Ali,” said adding that after approval by the Board, the reserve price will be sent to the Cabinet Committee.
He also maintained that the Cabinet Committee will give final approval regarding the reserve price. He termed it a very significant step; no major privatization has taken place in the last 20 years.
