PIA Privatization Auction Begins Tomorrow with Three Bidders Remaining

ISLAMABAD: The Privatization Commission will commence the auction process of Pakistan International Airlines Corporation Limited (PIA) tomorrow, Tuesday, December 23, after Fauji Fertilizer Company Limited withdrew from the bidding. Only three bidders remain in the competition.

According to the schedule issued by the Privatization Commission, bids will be submitted between 10:45 AM and 11:15 AM, while the bids will be opened at 3:30 PM. The process will be broadcast live on TV networks.

The remaining three bidders include:

1. A consortium comprising Lucky Cement Limited, Hub Power Holdings Limited, Kohat Cement Company Limited, and Metro Ventures Private Limited.

2. A consortium of Arif Habib Corporation Limited, Fatima Fertilizer Company Limited, City Schools Private Limited, and Lake City Holdings Private Limited.

3. Air Blue Private Limited.

Privatization Commission Chairman and Prime Minister’s Advisor on Privatization, Muhammad Ali, stated that bids will be placed in a transparent box, after which the board will set a reference price. The Cabinet Committee on Privatization will approve the reference price, which will be announced when bids are opened. If bids exceed the reference price, an open auction will take place; otherwise, the highest bid will be preferred.

Read more: PIA buyer to be exempt from sales tax on purchase of new aircraft, Senate penal told

Transaction Structure:
The auction will cover 75% of PIA shares, with 92.5% of proceeds going to PIA and 7.5% to the national treasury. The remaining 25% of shares will remain with the government, but the successful bidder can purchase them within 12 months with a 12% premium. Two-thirds of the bid amount for 75% shares will be paid within 90 days, and the remaining one-third within a year.

Employees and Operations:
Under the proposed agreement, no employee will be laid off for one year. Pension, benefits, and medical facilities for current and retired employees will remain fully protected. PIA currently operates 18 out of 34 aircraft, holds landing rights in over 170 countries, and has agreements with 97 nations. The airline currently has a net profit of PKR 11 billion, equity of PKR 30 billion, and liabilities of PKR 26 billion, payable over five years by the successful bidder.

Muhammad Ali emphasized that proper management and private sector investment could restore PIA to its golden era, enhance Pakistan’s aviation GDP share, and unlock significant revenue potential.