Bidding for PIA to be held on December 23: PM Shehbaz

ISLAMABAD, December 3, 2025: Prime Minister Shehbaz Sharif announced on Wednesday that the bidding process for Pakistan International Airlines (PIA)—the first state-owned enterprise slated for divestment under the current privatisation framework—will take place on December 23.

The announcement was made during a meeting with business leaders and company representatives participating in the national carrier’s privatisation process. The move comes as the government advances a renewed attempt to privatise PIA, a key condition of Pakistan’s $7 billion International Monetary Fund (IMF) bailout.

An earlier attempt to privatise the airline failed after a $36 million bid from a real estate company fell far short of the $305 million floor price, amid concerns over the airline’s debt, workforce, and limited managerial control.

Under the new plan, the government is offering full divestment, has scrapped sales tax on leased aircraft, and will provide limited protection against legal and tax claims. Approximately 80% of PIA’s debt has been transferred to the state.

During the meeting, PM Sharif stressed that transparency and merit would be the guiding principles of the privatisation process, adding that the bidding would be broadcast live nationwide.

“The privatisation process is progressing smoothly to restore PIA’s identity and align it with modern requirements,” he said. “God willing, PIA will soon once again live up to its tradition of being ‘Great People to Fly With.’”

The prime minister highlighted that reviving global flight operations would benefit overseas Pakistanis and bolster the tourism sector, emphasizing that modernising the national carrier is crucial for attracting tourists.

He expressed confidence that the successful bidder would focus on restoring PIA’s reputation and driving its future growth. Participants attending the meeting reportedly commended the government for implementing a professional and transparent privatisation mechanism.

Privatisation Minister Muhammad Ali had previously noted that the government is targeting Rs86 billion in privatisation proceeds this year, with PIA contributing significantly under the revised framework.

Renewed efforts have attracted interest from major local business groups, including Airblue, Lucky Cement, Arif Habib Group, and Fauji Fertiliser, with final bids expected later this month.

Read more: PIA privatisation expected in December 2025 as bidding process resumes

The airline recently resumed flights to the United Kingdom after more than five years, following the lifting of a ban related to a fake pilot license scandal. European operations had also restarted earlier this year after a four-year hiatus.

According to the Privatisation Division, four pre-qualified consortia are currently in the final stages of negotiation on commercial terms. Talks on share purchase and shareholders’ agreements have been ongoing, while the federal cabinet will approve the reserve price before the final bidding.