The Arif Habib Corporation Limited-led consortium successfully won the bid for Pakistan International Airlines on Tuesday, securing a 75 percent stake with a final offer of Rs135 billion in a historic auction held in Islamabad. The win marks Pakistan’s first major privatization in nearly two decades.
Following an intense bidding war, Arif Habib expressed his patriotic sentiments about the acquisition. The consortium includes major companies such as Fatima Fertilizer Company Limited, City Schools Private Limited, and Lake City Holdings Private Limited, demonstrating strong domestic business confidence in the national carrier.
The auction began with three prequalified bidders submitting sealed bids. Arif Habib consortium opened with Rs115 billion, Lucky Cement consortium bid Rs101.5 billion, while private airline Airblue placed the lowest offer at Rs26.5 billion. After Airblue exited following the first round, an open auction ensued between the two top bidders.
The second round witnessed a fierce competition between Arif Habib and Lucky Cement consortiums, with both repeatedly raising their bids. The contest escalated through 12 rounds, with Lucky Cement finally submitting Rs134 billion before Arif Habib countered with the winning bid of Rs135 billion.
Finance Minister Muhammad Aurangzeb highlighted that all bidders were Pakistani, describing it as a major milestone for the country’s investment climate. He emphasized that the process would boost investor confidence and demonstrate Pakistan’s commitment to transparent economic reforms.
Of the Rs135 billion paid for the stake, 92.5 percent will be invested directly into PIA for operational improvements, while only 7.5 percent, amounting to Rs10.12 billion, will transfer to the federal government. The government retains a 25 percent stake, which the successful bidder may acquire later.
