ISLAMABAD: Pakistan’s leading business groups, with interests in cement, power, fertilizer, and real estate, have shown interest in acquiring the struggling Pakistan International Airlines (PIA), raising hopes for the success of its second privatization attempt.
Business giants like Lucky Cement, Arif Habib conglomerate, and Hub Power, alongside military-owned Fauji Fertilizer Company and the Pakistan Navy’s Bahria Foundation, have submitted bids to acquire the majority stakes in PIA. The Privatisation Commission confirmed that five parties submitted both expressions of interest and statements of qualifications by the extended deadline.
Muhammad Ali, Advisor to the Prime Minister on Privatisation, stated that the aim is to pass PIA to a consortium that could transform it into a profitable global entity. The bids come after the first privatization attempt last year failed due to the lack of bidders.
The latest attempt has seen a variety of well-connected and resource-rich entities entering the bidding process, including a consortium of Lucky Cement, Hub Power, Kohat Cement, and Metro Ventures. Another consortium includes Arif Habib Corporation and Fatima Fertilizer Company. Other parties involved are Fauji Fertilizer Company, Air Blue, and a consortium of Augment Securities & Investments, Serene Air, and Bahria Foundation.
The Privatisation Commission will now evaluate the statements of qualifications and proceed with the next stage of the bidding process, which includes giving the prequalified parties access to the virtual data room for buy-side due diligence.
PIA’s balance sheet and minimum reserve price will be revised due to improved finances, boosting the prospects for a successful sale. The government plans to privatize PIA by the last quarter of 2025, aiming to meet the target of generating Rs85 billion from privatization proceeds in the coming fiscal year.
