PIA Privatisation Bids Submitted as Government Moves Ahead with Historic Sale
Three companies submitted PIA privatisation bids on Tuesday morning, moving the long-awaited sale process forward. As a result, the next bidding phase will now begin at 4:30pm instead of 3:30pm. Officials confirmed that the first stage has ended successfully.
Three Firms Compete for Majority Stake
Privatisation Commission Chairman Muhammad Ali confirmed the development. He said the process has now moved to the commission’s board for review. The bids came from Lucky Cement, Airblue, and Arif Habib Group.
However, some pre-qualified bidders withdrew before submission. Fauji Fertiliser and others decided not to continue. Despite this, the government views the response as positive.
The Privatisation Commission board will now set the reference price. This price represents the minimum acceptable sale value. Once approved, the board will forward it to the Cabinet Committee for final clearance.
If bids exceed the reserve price, authorities will hold an open auction. Otherwise, the highest bidder will get a chance to match the price. Therefore, competition remains open at this stage.
Impact of Privatisation on PIA
The successful bidder will initially acquire a 75% stake. In addition, the buyer must purchase the remaining 25% within 90 days. The government cleared PIA’s Rs654 billion liabilities last year to attract investors.
New owners must also invest Rs80 billion over five years. Of the sale proceeds, 92.5% will return to PIA for reinvestment. The remaining 7.5% will go to the government.
Officials say the move aims to restore financial stability. For example, PIA has struggled with debt, aging aircraft, and weak competitiveness.
The commission also addressed employee concerns. It guaranteed job security for one year. The holding company will manage pensions and post-retirement benefits.
According to Muhammad Ali, this sale marks a historic moment. No major national asset has been privatised in two decades. As a result, the government hopes this step will revive Pakistan’s flag carrier.
