ISLAMABAD: The government is set to proceed on Tuesday with the privatisation of Pakistan International Airlines Corporation Limited (PIACL), one of the most prominent and closely watched transactions involving a state-owned enterprise, amid efforts to avoid a repeat of the failed attempt made earlier this year.
Three consortiums remain in contention to acquire a 75 per cent stake in the national flag carrier. These are led by AirBlue, Arif Habib Pvt Ltd and Lucky Cement, following the withdrawal of Fauji Fertiliser Company (FFC) from the bidding process. Officials say the transaction is being handled with added safeguards to ensure transparency and competitiveness.
Privatisation Minister Muhammad Ali has stated that the two unsuccessful bidders will not be allowed any role in the future management or operations of the airline. According to him, only the winning consortium will be entitled to participate in running PIACL, while unsuccessful bidders will be excluded from joining the new management at a later stage. However, entities that did not take part in the auction process would be eligible to partner with the successful bidder, leaving the option open for FFC to join subsequently if it so chooses.
Ahead of the bidding, reports emerged of informal discussions among some of the interested parties regarding a possible shared control arrangement. According to media reports, a proposal suggesting a three-way split of control among consortiums linked to Arif Habib, Lucky Cement and another bidder was floated but ultimately abandoned.
All corporate eyes on PIA privatisation, tomorrow is D-day.
Behind the scenes drama has emerged. In a stunning development, Tabba Group flatly rejected a joint-venture proposal pitched by Arif Habib Group at a PM-led meeting last week – – a deal that would have split ownership… pic.twitter.com/TcCj1EMbxD— Kamran Khan (@AajKamranKhan) December 22, 2025
Lucky Cement chairman Muhammad Ali Tabba confirmed that such a proposal had been mentioned informally after a meeting in Islamabad but said it was neither government-sponsored nor pursued further. A senior government official also confirmed that the discussions were not part of any formal privatisation process.
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The Privatisation Commission announced that sealed bids would be submitted around 10:30am on Tuesday. The reference price for the transaction will be approved by the Privatisation Commission Board and the Cabinet Committee on Privatisation only after the bids are received. The bids will be opened later in the day at a ceremony scheduled for 3:30pm, to be held in the presence of the bidders.
Adviser to the Prime Minister on Privatisation Muhammad Ali is expected to hold a press conference following the conclusion of the bidding process. Officials said the proceedings would be broadcast live on television and streamed through government social media platforms.
The government is keen to avoid a repeat of the previous privatisation attempt, when only one bidder participated and offered Rs10 billion for a 60 per cent stake, far below the reference price of Rs85bn. That bid was ultimately rejected after the bidder declined to revise its offer.
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