Pakistan has received eight expressions of interest for the Pakistan International Airlines (PIA), though only five provided documents of qualification, according to the Privatization Ministry.
In a statement, the ministry said bids were submitted ahead of a June 19 deadline to acquire up to 100% of PIA. The national flag carrier, long described as a white elephant, accumulated over $2.5 billion in losses in roughly a decade. The incumbent government has repeatedly stressed that its privatization is a requirement to reduce burdens on the treasury.
The companies that submitted statement of qualification to buy PIA are a consortium comprising Lucky Cement Limited, Hub Power Holdings Limited, Kohat Cement Company Limited and Metro Ventures (Private) Limited; a consortium comprising Arif Habib Corporation Limited, Fatima Fertilizer Company Limited, City Schools (Private) Limited and Lake City Holdings (Private) Limited; Fauji Fertilizer Company Limited; Air Blue; and a consortium comprising Augment Securities and Investments (Private) Limited, Serene Air (Private) Limited, Bahria Foundation, Mega C&S Holding, and Equitas Capital LLC.
The three companies that provided expressions of interest but did not submit documents of qualification were AKD Group, Rafique Engineering and Sardar Muhammad Ashraf D. Baloch (Pvt.) Limited.
“The government will review the documents and give qualified parties access to data for due diligence,” read the ministry’s statement.
The sale of the PIA, part of a wider bid to privatize loss-making state-owned entities, is a requirement of an ongoing $7 billion International Monetary Fund bailout. A previous attempt to sell the airline last year failed as a $36 million bid from real estate firm Blue World City fell short of the $305 million floor price, with concerns over debt, staffing, and limited control.
To overcome the concerns, the government has offered full divestment; has scrapped sales tax on leased aircraft; and is providing limited protection from legal and tax claims. It has also transferred around 80% of the airline’s debt to the state.
According to the ministry, bidders would be pre-qualified in early July, with final bidding and negotiations expected in the fourth quarter of 2025.