Pakistan has completed its first major privatisation in nearly 20 years after the Arif Habib consortium won the bidding war for Pakistan International Airlines Corporation Ltd (PIACL) with a successful offer of Rs135 billion at a live-televised auction in Islamabad. The process began with sealed bids from Lucky Cement, Airblue, and Arif Habib, after which Airblue exited for proposing a price below the Rs100bn reference benchmark. In the competitive second round, Lucky Cement raised its offer to Rs134bn before conceding to Arif Habib’s final Rs135bn bid.
PIA Privatization:
Arif Habib consortium wins bid with Rs 135 Billion offer.
They will own 75% PIA Shares.#PIA I #ArifHabibConsortiumpic.twitter.com/cDBM1AXK7E pic.twitter.com/zL0SkpIeZU— Dr Ahmad Rehan Khan (@AhmadRehanKhan) December 23, 2025
Calling it a milestone for Pakistan’s economy, Prime Minister Shehbaz Sharif hailed the transparently conducted auction as a strong vote of confidence from leading business groups. Finance Minister Muhammad Aurangzeb and other senior officials echoed optimism that the privatisation would attract investment, halt financial losses, and help revive the national carrier.
Following the win, Arif Habib expressed confidence in turning around PIA through fresh capital, fleet expansion, and strategic partnerships, including potential collaboration with foreign airlines. Economists termed the development a positive reform, though they noted that it was enabled through major debt adjustments, incentives, and policy sweeteners.
Under the privatisation structure, 75% of PIA has been offered for sale, while the winning consortium has a 90-day option to acquire the remaining 25% at a 12% annual premium. The government maintains that the process will reduce taxpayer burden and pave the way for a more efficient aviation sector, as unsuccessful bidders will be barred from later joining the airline’s management to ensure transparency and competition.