Pakistan’s government has received five strong expressions of interest to acquire a 51–100% stake in Pakistan International Airlines (PIA), the state-run carrier, as part of a comprehensive privatisation drive tied to an IMF-backed reform program.
Who is placing the bid?
Among the bids on the shortlist are:
Partnership between Kohat Cement, Hub Power, Lucky Cement, and Metro Ventures
Lake City Holdings, The City School, Fatima Fertiliser, and Arif Habib Corp. form the consortium.
Airblue, the Bahria Foundation, and the American financial company Equitas Capital joined the military-affiliated Fauji Fertiliser Co.
Yunus Brothers Group and potentially additional business or financial organisations.
These bids qualify for full divestment and management control, with the government absorbing approximately 80% of PIA’s US $2.5 billion debt—and offering tax incentives and legal protections to sweeten the deal.
Timeline and Upcoming Actions
Bidder pre-qualification is anticipated by early July.
It will take two to three months for due diligence.
The last discussions and possible transfer could be completed by the end of 2025.
A key component of Pakistan’s $7 billion IMF bailout programme, which also involves asset sales in industries including power and hotels, this project is the country’s largest privatisation in 20 years.
The Significance of It
Flagship test drive: The outcome of the deal will determine how future state entity privatisations are conducted.
Profit milestone: PIA’s first operating profit in 21 years increased the company’s attractiveness to investors.
Route resumption: With European routes revived post-EASA ban, plus pending UK clearances, the carrier’s international profile is improving.
The bottom line
After a disastrous attempt in 2024, Pakistan has made significant strides. Strong interest and better transaction terms are evident in the current bid round, which includes consortia that are both financially stable and industrially diverse. The government now moves on to due diligence and negotiation with the goal of closing by the end of 2025, thanks to the entire debt transfer and alluring incentives.
