Pakistan has completed a major privatisation deal after nearly 20 years. Pakistan International Airlines Corporation Ltd (PIACL) was sold for Rs135 billion in an open auction held in Islamabad. The winning bid was made by the Arif Habib consortium.
The auction began in the morning with three pre-qualified bidders. These included Lucky Cement, private airline Airblue, and the Arif Habib group. Each party submitted its initial offer in the first round of bidding.
Airblue exited early after placing a bid of Rs26.5 billion. Its offer was far below the government’s reference price of Rs100 billion, so it could not move forward in the process.
Lucky Cement offered Rs101.5 billion, slightly above the reference price. Meanwhile, the Arif Habib consortium placed a stronger bid of Rs115 billion. After this round, the reference price announced and allowed the top two bidders to continue. A 30-minute break was given to Lucky Cement and Arif Habib so they could consult their teams and review their strategies. After the break, the auction entered the second and final round.
The second round started with a base price of Rs115 billion. This was based on the highest bid from the first round. The minimum increase was set at Rs250 million. Both bidders actively competed during this stage. The price rose steadily as each side tried to outbid the other. Lucky Cement raised its offer to Rs134 billion, showing strong interest in the national airline.
However, Arif Habib responded quickly with a final bid of Rs135 billion. This move ended the contest. Lucky Cement then stepped back and congratulated Arif Habib on winning the auction.
This sale is being seen as a major step for Pakistan’s economic reforms. It marks the country’s first large-scale privatisation in nearly two decades and could open the door for more such deals in the future.
Officials hope the new ownership will help improve PIA’s performance and reduce financial pressure on the government.