PIA Privatisation
The ongoing privatization process of Pakistan International Airlines (PIA), the country’s national flag carrier, has garnered significant attention from major players in the aviation and business sectors, with several prominent companies expressing formal interest in acquiring a controlling stake in the airline.
According to a Bloomberg report published on Thursday, entities including Airblue Ltd. and Gerry’s Group have emerged as key contenders in the competitive bidding process.
Airblue’s Managing Director Aslam Chaudhary and Gerry’s Group Managing Director Akram Wali Muhammad confirmed their companies’ participation in the bid to acquire between 51% and 100% of shares in PIA.
The sale is part of the government’s broader effort to privatize the financially struggling airline and revive its fortunes, while also reforming loss-making state-owned enterprises (SOEs) under the stipulations of a $7 billion International Monetary Fund (IMF) program.
Beyond Airblue and Gerry’s Group, the privatization process has attracted interest from some of Pakistan’s most influential business figures. Notably, Muhammad Ali Tabba and Arif Habib have each formed separate consortiums to place their bids for the airline.
Arif Habib, in a statement to Bloomberg, revealed that he has partnered with Fatima Fertilizer Ltd., Lake City, and The City School to form a strong bidding group aimed at taking over PIA’s operations.
Similarly, the Yunus Brothers Group — a well-established conglomerate in Pakistan — has joined forces with Mega Group, Kohat Cement Co., and Metro Group to participate in the bidding process, according to the same report.
The deadline to submit an Expression of Interest (EoI) for acquiring shares in Pakistan International Airlines Corporation Limited (PIACL) was initially set for June 3, 2025, but was later extended to June 19, 2025. The extension was made without altering the existing terms and conditions of the sale, in order to allow more time for serious contenders to finalize their proposals.
PIACL is a public limited company, and the Government of Pakistan currently holds about 96% of its issued capital through PIA Holding Company Limited. As part of the privatization initiative, the government is aiming to sell a controlling stake to generate much-needed revenue and reduce the fiscal burden of sustaining a debt-laden airline.
This isn’t the government’s first attempt at privatizing the airline. Last year’s effort failed after receiving only one bid, which fell far short of the expected valuation.
The Blue World City consortium, which submitted the sole offer, proposed just Rs10 billion for a 60% stake, while the Privatisation Commission’s benchmark was Rs85.03 billion. The large gap between the asking price and the bid ultimately led to the cancellation of that round.
In a recent development, Fauji Fertilizer Company Limited (FFC), one of Pakistan’s leading fertilizer producers, has also expressed formal interest in acquiring a stake in PIA, adding further weight to the ongoing privatization process.
As the EoI deadline closes, the government appears committed to pushing forward with the privatization of PIA, viewing it as a vital step toward restructuring loss-making entities and enhancing the efficiency of the national economy. With strong contenders now in the race, the fate of Pakistan’s flagship airline may soon enter a transformative new chapter.
