New owners plan to expand fleet in phases, initially to 38 aircraft, then to 65.
ISLAMABAD, Dec 23, 2025: Arif Habib Consortium has emerged victorious in the auction for the privatization of Pakistan International Airlines (PIA), securing the highest bid of 135 billion rupees.
This bid outpaced the Lucky Cement Consortium, which offered 134 billion rupees, by a narrow margin.
The auction, which sought to privatize 75 percent of PIA’s stakes, attracted three major bidders: the Arif Habib Consortium, Lucky Cement Consortium, and Airblue.
In the first round of bidding, Lucky Cement offered Rs101.5bn, Airblue submitted a bid of Rs26.5bn and the Arif Habib consortium put up Rs115bn. Airblue then exited the race after its offer fell below the government’s reference price of Rs100bn, leaving the contest to the top two bidders.
Officials announced a short break to allow consultations by the remaining bidders before the auction resumed. The second round started from a base bid of Rs115bn — set at the level of the highest first-round offer — with a minimum increment of Rs250 million.
The bidding quickly turned into a tight contest. Lucky Cement raised its offer to Rs134bn, prompting an immediate counter from Arif Habib at Rs135bn. With the gap narrowed and the price pushed above its last offer, Lucky Cement withdrew and congratulated the winning consortium, bringing the auction to a close.
The entire process was broadcast live and streamed on official social media channels, with representatives of the bidders, the Privatisation Commission and government officials present at the venue.
After securing the winning bid, Arif Habib described PIA as a national institution and said the privatisation would help promote investment.
“PIA is our national institution,” he said, recalling its past reputation and praising its workforce. He said the new owners planned to expand the airline’s fleet in phases, initially to 38 aircraft and later to 65, depending on demand.
He also assured employees that the new ownership would aim to build confidence and help them realise their potential.
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Rs135bn bid finally takes PIA off govt hands.