The initial phase witnessed a competitive bidding round, with Lucky Cement offering 101.5 billion rupees and Airblue 26.5 billion, leaving the Arif Habib consortium firmly in the lead
By S.M. Inam
ISLAMABAD: The Arif Habib consortium submitted the highest bid of Rs135 billion to acquire a 75 percent stake in Pakistan International Airlines (PIA), marking a significant step in the government’s ongoing efforts to reform the national carrier.
The development was confirmed by Muhammad Ali, adviser to the Privatization Commission, said the sale was part of a broader agenda aimed at reviving PIA’s operational and financial capacities. He further explained that the bidding process, focused on a 75 per cent stake in the airline, was structured to ensure that 92.5 per cent of the proceeds would be reinvested into improving PIA’s performance.
“Our goal is to restore the standards and efficiency the airline once had while attracting fresh investment into the country,” the Advisor to PC said. Under the proposed terms, two-thirds of the payment was to be made upfront, with the remaining one-third scheduled for later, and bidders were allowed to bring in up to two additional partners after the initial bidding stage.
The first phase saw competing offers from Lucky Cement, which bid 101.5 billion rupees, and Airblue, which placed a bid of 26.5 billion rupees, positioning the Arif Habib consortium as the frontrunner. Speaking after the announcement, Arif Habib, head of the group, indicated that an international airline might be invited to join in the next phase of privatization, reflecting the consortium’s ambitions for global partnerships.
Arif Habib noted that preliminary discussions with several carriers had already taken place and suggested that the winning bid could have potentially reached 130 billion rupees. He emphasized the airline’s untapped potential, particularly in religious travel for Hajj and Umrah pilgrims, and among overseas Pakistani customers.
The business tycoon said that combining the experience of existing staff with new professional talent would be central to restoring PIA’s performance and reputation. “We have talented professionals with good experience. Now the existing team will get opportunities that were previously unavailable,” he said.
He also revealed plans for consultation with the Lucky Group, which had been involved in earlier discussions, as part of a broader strategy to rebuild confidence in the airline. “Our aim is to restore PIA’s prestige. Pakistani professionals have successfully established airlines in several countries,” Habib added. Concluding with a sporting analogy, he said, “We’ve won the toss; now we have to set the field and win the match,” underscoring the consortium’s determination to transform the airline into a sustainable and globally competitive carrier.
The acquisition marks a critical moment for PIA, offering a potential turnaround for an institution long regarded as a national symbol yet mired in financial and operational challenges. Observers said the success of the initiative would hinge on effective management, strategic partnerships, and a careful balance between leveraging existing talent and introducing innovative practices.
