Two of the most serious competitors would be willing to integrate Fauji Fertilizer as a partner
The race to acquire Pakistan’s national carrier PIA has officially entered its final stages, with some bidders seeking the support of internationally renowned airlines.
The government’s renewed efforts to privatize PIA come after a failed takeover bid last year, when a single offer, of 10 billion rupees ($36 million) from real estate developer Blue World City, was received for a 60 percent stake. The offer, well below the government’s floor price of 85 billion rupees ($305 million), was rejected.
The Privatization Commission reopened the process in April 2025, inviting local and international investors to register their interest for a 51 to 100 percent stake.
The most serious potential buyer withdrew due to unpaid loans and tax issues. However, most of these issues have now been resolved and four bidders have been shortlisted.
Pre-qualified bidders include:
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Lucky Cement Consortium, led by Habibullah Khan and others
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Arif Habib Consortium, including Fatima Fertilizer and others
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Fauji Fertilizer and Air Blue, whose position remains less clear
The first two consortia are considered the most serious contenders; both consortia would be willing to integrate Fauji Fertilizer as a partner.
Read: PM announces live broadcast of PIA tender process on December 23
The Lucky group is said to be investing more time and money, while the Arif Habib consortium is showing increasing interest. Both have hired international aviation advisors: Lucky Group entrusted technical advice to the Turkish company Pegasus Airlines, while Arif Habib called on Sibra Aviation Partners.
Following their advice, the two serious parties requested multiple adjustments to the privatization structure and commission processes, most of which were approved, paving the way for the sale.
As the privatization date approaches, PIA’s 6,500 employees are said to be increasingly worried about their future.
Learn more: Privatization of PIA: four companies pre-qualified to bid to acquire 75% of the capital
Analysts suggest that based on potential profits and financial models prepared by the future board, the government could increase the reserve price.
Last year, PIA’s reserve stood at Rs85 billion, and it is now expected to be between Rs90 billion and Rs100 billion, with the airline having already made a pre-tax profit of Rs11 billion in the current financial year. Buyers are also optimistic about the revival of PIA.
Prime Minister Shehbaz Sharif announced on December 4 that the December 23 bidding process for the privatization of PIA would be broadcast live on national television, in the interest of transparency.
