ISLAMABAD: The federal government is holding open bidding for Pakistan International Airlines Corporation today. The privatisation plan involves selling a 75 percent stake in the national carrier. Authorities aim to attract credible strategic investors through a transparent process.
The Privatisation Commission confirmed the full schedule and bidding framework. Officials remain confident about investor interest despite recent changes in the bidder pool.
Bidding Schedule and Procedure
According to the Privatisation Commission, eligible bidders will submit sealed bids at 10:30am. Later in the day, officials will open the bids during a formal ceremony at 3:30pm. The event will take place in the presence of all participating bidders. Authorities plan to ensure transparency throughout every stage of the process.
The bidding will proceed under previously approved privatisation terms.
Approval of Reference Price
After receiving bids, the Privatisation Commission Board will review the submissions. Subsequently, the Cabinet Committee on Privatisation will approve the reference price. Officials will finalize the benchmark only after evaluating bid values. Authorities will publicly announce both bids and reference prices. The process will conclude in line with the approved legal and financial framework.
Live Broadcast and Media Briefing
The government will broadcast the entire bidding process live. Television networks and digital platforms will carry real-time coverage. This step aims to reinforce public confidence in the process. After the bidding concludes, Adviser to the Prime Minister on Privatisation Muhammad Ali will address the media. He will explain the outcome during a press conference.
Prequalified Bidders in Competition
Three prequalified bidders have remained in the race. Airblue Private Limited continues as one of the contenders.
Another bidder is a consortium led by Lucky Cement. This group includes Hub Power Holdings, Kohat Cement, and Metro Ventures. A third consortium is led by Arif Habib Corporation.
Composition of Competing Consortia
The Arif Habib-led consortium includes Fatima Fertiliser. City Schools and Lake City Holdings also form part of the group. All three bidders submitted the required earnest money. They fulfilled financial, technical, and regulatory criteria. Officials confirmed their eligibility for the final bidding stage.
Investment Allocation and Ownership Structure
Under the sale structure, most funds will support the airline directly. Authorities will inject 92.5 percent of the sale proceeds into PIA. The government will receive the remaining 7.5 percent. The state will retain a 25 percent shareholding in the airline. Officials described this retained stake as strategically significant.
Flexibility for Full Ownership
The structure allows bidders flexibility after the sale. Winning investors may later acquire the remaining government stake. They may also choose to leave it with the state. Authorities designed this model to suit varying investor strategies. Companies that skip bidding cannot join the winning consortium later.
Payment Schedule for Successful Bidder
The government has defined clear payment terms. The winning bidder must pay two-thirds of the bid amount within 90 days. The remaining one-third must be paid within 12 months. Officials believe this timeline balances investor capacity and state needs. It also ensures a steady flow of capital into the airline.
Protection for PIA Employees
The government has guaranteed job security for PIA employees. This protection will remain in place for at least 12 months. The holding company will manage pension obligations and post-retirement benefits.
Medical and other long-term benefits will also remain protected. New owners will cover current salaries and allowances.
