PIA Sold! Arif Habib Consortium Wins The Bid for PKR 135 Billion

The privatization of Pakistan International Airlines (PIA) was finally concluded, in a historic twist of events in the history of the aviation industry in Pakistan. The Arif Habib Consortium became the undisputed victor and won a majority stake in the national carrier, with a final and unquestioned bid of PKR 135 billion ($482 million).

Although the first round of bidding was accompanied by the group winning with PKR 115 billion, the bidding process was entered into a high-stakes open auction after two participants exceeded the PKR 100 billion government reference price.

The Final Battle: PIA Bidding Highlights

The televised event in Islamabad became a duel between the two best candidates. When the price rose, the last moments were:

• Arif Habib Consortium: Final winning bid of PKR 135 billion.
• Lucky Consortium: Withdrew after a final valiant offer of PKR 134 billion.
• Airblue: Exited early in the process with a bid of PKR 26.5 billion.

The sale marks the end of a decades-long struggle to offload the debt-ridden airline. Under the terms of the agreement, the Arif Habib Group will not only pay the acquisition cost but is also committed to a mandatory investment of PKR 80 billion over the next five years to modernize the fleet and infrastructure.

“Our goal is to make this airline great again,” stated a representative of the Arif Habib Group following the victory. “We are committed to restoring the global prestige of the ‘Green Tail’ and meeting international service standards.”

Key Takeaways of the PIA Bidding

Privatization Commission Chairman Muhammad Ali hailed the transparency of the process, noting that this is the largest transaction in Pakistan’s history. With the government having already assumed responsibility for PKR 654 billion of PIA’s legacy debt last year, the airline now enters its private era with a much cleaner balance sheet.