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The Government of Pakistan has shortlisted five potential buyers for the complete acquisition of Pakistan International Airlines (PIA), marking a pivotal moment in the country’s long-delayed privatisation efforts.
The Privatisation Ministry confirmed that out of eight initial expressions of interest, five parties submitted qualifying documents by the June 19 deadline. These include prominent business conglomerates such as Lucky Cement, Hub Power Holdings, Kohat Cement, and Metro Ventures, as well as a consortium led by Arif Habib Corporation, which includes Fatima Fertilizer, The City School, and Lake City Holdings. Other contenders are Fauji Fertilizer Company, Air Blue, and a consortium featuring Serene Air, Bahria Foundation, and Equitas Capital LLC.
This move follows PIA’s first operating profit in over two decades, achieved in the 2024–25 fiscal year after a major restructuring. The airline, once a global aviation leader, had accumulated over $2.5 billion in losses over the past decade. The government is now offering 100% divestment, with incentives such as tax exemptions on leased aircraft and limited legal liability, making the deal more attractive to investors.
The shortlisted bidders will now enter a due diligence phase, with final negotiations expected in Q4 2025. This privatisation is seen as a litmus test for Pakistan’s ability to reform state-owned enterprises and meet IMF bailout conditions.
If successful, the PIA sale will be the country’s first major privatisation in nearly 20 years, potentially unlocking billions in revenue and setting the stage for further asset sales, including the Roosevelt Hotel and several power firms.