By Staff Reporter
ISLAMABAD: Five bidders, including prominent business groups and a military-backed firm, have emerged as contenders to buy ailing Pakistan International Airlines, the Privatization Ministry said on Thursday, signaling momentum in Pakistan’s latest push to offload the loss-making state-owned enterprises and comply with the terms of a $7 billion International Monetary Fund bailout.
The bids were lodged ahead of a June 19 deadline for acquiring up to 100% of PIA, a carrier that has racked up more than $2.5 billion in losses over the past decade.
Despite its financial struggles, the airline achieved a rare milestone in the fiscal year ending June 2024, posting its first operating profit in 21 years following a sweeping restructuring. The sale, if successful, would be Pakistan’s first major privatization in nearly two decades and a litmus test for its ability to shed cash-draining state firms.
The Privatization Ministry said in a statement that while eight parties initially signaled interest, only five submitted the required documents of qualification.
The contenders include a consortium comprising Lucky Cement Limited, Hub Power Holdings Limited, Kohat Cement Company Limited, and Metro Ventures (Private) Limited.
Another consortium is made up of Arif Habib Corporation Limited, Fatima Fertilizer Company Limited, City Schools (Private) Limited, and Lake City Holdings (Private) Limited.
Fauji Fertilizer Company Limited, a military-backed entity, is also in the running, alongside private carrier Air Blue.
Additionally, a consortium including Augment Securities & Investments (Private) Limited, Serene Air (Private) Limited, Bahria Foundation, Mega C&S Holding, and Equitas Capital LLC has submitted documents.
The government extended the deadline for expressions of interest to June 19, 2025, from an earlier cutoff of June 3, with all terms unchanged, giving potential buyers additional time to prepare their submissions.
PIA, a public limited company and Pakistan’s flag carrier, is 96%-owned by the government through PIA Holding Company Limited. The government is looking to divest a 51-100% stake in the airline as part of a broader strategy to raise funds and overhaul state-owned enterprises that have long strained public finances, a key plank of the IMF program.
The carrier’s turnaround last year, while notable, follows years of red ink that have made it a symbol of the challenges facing Pakistan’s state sector.
This isn’t the government’s first attempt to privatize PIA. Last year, the effort stumbled when only one bidder, the Blue World City consortium, came forward. Its offer of Rs10 billion for a 60% stake fell far short of the Privatisation Commission’s minimum price of Rs85.03 billion, derailing the process.
Despite its woes, PIA remains a significant player in Pakistan’s aviation landscape. In the last financial year, the full-service airline carried approximately 4 million passengers across 30 destinations, operating 268 flights per week. Its ancillary services bolster its role as a cornerstone of the country’s aviation infrastructure.
PIA resumed flights to Europe in January after the European Union lifted a four-year safety ban. The airline has also approached UK authorities for permission to resume services to London and Manchester.
The outcome of this bidding round will be closely scrutinized, both as a measure of investor appetite for Pakistan’s privatization push and as an indicator of the government’s resolve to deliver on the structural reforms demanded by the IMF.
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