Fauji Foundation opts out of PIA privatization bid

December 22, 2025 (MLN): Fauji Foundation has decided not to submit a bid for the privatization of Pakistan International Airlines (PIA), according to Muhammad Ali, Adviser to the Prime Minister on Privatisation and Chairman of the Privatisation Commission, who disclosed the development during an interview with a private media channel.

He stated that while the Fauji Foundation was initially considered among the potential bidders, it has opted not to participate in the bidding process.

However, he added that the foundation may explore engagement with the winning consortium at a later stage through mutual negotiations, if deemed appropriate.

The decision means that the bidding process will now involve a consortium led by Lucky Group, a consortium headed by Arif Habib Group, and Air Blue.

The privatization bidding is scheduled to take place on December 23 and will be conducted live on television as part of the government’s transparency measures.

Muhammad Ali stated that the government respects the Fauji Foundation’s decision and reiterated that the privatisation process remains competitive and transparent, with multiple qualified bidders still in the running.

The government is offering a 75% stake in PIA along with management control, while retaining a 25% minority stake that the winning bidder may choose to acquire within 90 days.

The privatization of PIA is being closely watched by investors and market participants as a key reform initiative aimed at reviving the loss-making national airline and reducing fiscal pressure on the government.

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