Islamabad, December 24 - In a landmark development for Pakistan's aviation sector, the privatization of Pakistan International Airlines (PIA) has been successfully concluded with a consortium led by Arif Habib Corporation emerging as the highest bidder. The group secured a 75% stake in the national flag carrier for Rs135 billion during a transparent auction process held in Islamabad on December 23, 2025. This transaction represents Pakistan's first major privatization in nearly two decades and signals renewed investor confidence in the country's flagship airline, long burdened by financial challenges.
The bidding process attracted three pre-qualified participants: a consortium headed by Lucky Cement, private carrier Airblue, and the Arif Habib group, which includes partners such as Fatima Fertiliser Company, City Schools, and Lake City Holdings. Initial sealed bids saw Airblue offer Rs26.5 billion, falling below the government's reference price of Rs100 billion and leading to its exit. The Arif Habib consortium started strong with Rs115 billion, ahead of Lucky Cement's Rs101.5 billion, advancing both to an intense open auction round. Competitive increments followed, with Lucky Cement reaching Rs134 billion before the Arif Habib group clinched the deal at Rs135 billion.
This successful PIA sale follows a failed attempt in 2024 due to insufficient offers and comes after significant restructuring efforts by the government. Key preparations included assuming substantial legacy liabilities, achieving the airline's first pre-tax profit in years, and securing the lifting of international flight bans to Europe and other regions. These measures enhanced PIA's attractiveness, paving the way for robust domestic bidding and positioning the airline for potential growth under private management.
The acquisition by the Arif Habib consortium is expected to usher in professional governance and operational efficiencies, aiming to restore PIA's former prominence in global aviation. With most proceeds earmarked for reinvestment in the carrier, the deal not only alleviates fiscal strain on the government but also opens opportunities for modernization and expanded routes, benefiting Pakistan's economy and travelers seeking reliable air services.
