PIA sale goes live tomorrow on TV

December 22, 2025 (MLN): The bidding process for the privatization of Pakistan International Airlines (PIA) will be conducted live on television on December 23 to ensure complete transparency, according to Muhammad Ali, Adviser to the Prime Minister on Privatisation and Chairman of the Privatisation Commission, who shared extensive details during an interview with a private media channel.

Explaining the bidding mechanism, he said the process will begin at 11:00 am with the submission of sealed bids by pre-qualified bidders, which will be placed in a transparent box.

At this stage, no reference or reserve price will be disclosed or finalized in order to prevent any possibility of information leakage or undue influence on bidders.

After the sealed bids are received, the Privatization Commission Board will review the transaction structure, followed by approval of the reserve price by the Cabinet Committee on Privatization.

Muhammad Ali said this approval phase is expected to take approximately two to three hours, after which the sealed bids will be opened in the presence of the media.

He explained that if more than one bid exceeds the reserve price, the process will move into an open auction, allowing bidders to revise their offers.

The bidder offering the highest price will be awarded a 75% stake in PIA along with management control.

However, if all bids fall below the reserve price, the highest bidder will be given the first right to match the reserve price, followed by the second-highest bidder if required.

According to Muhammad Ali, the decision regarding the sale of the 75% stake will be finalized on the same day, while the successful bidder will have up to 90 days to decide whether to acquire the remaining 25% government-held shares.

He added that the government is comfortable retaining a minority stake if the buyer chooses not to exercise this option.

Providing clarity on the use of proceeds, he said that 92.5% of the funds raised through the sale of the 75% stake will be injected directly into PIA to strengthen its balance sheet and support operational revival, while only 7.5% will be received by the government.

He confirmed that the bidding process includes a consortium led by Lucky Group, a consortium headed by Arif Habib Group, and Air Blue, while Fauji Foundation will not submit a bid in the privatization process.

However, he noted that Fauji Foundation may explore engagement with the winning consortium at a later stage through mutual arrangements.

Addressing concerns related to employees, Muhammad Ali said the government has ensured job protection for PIA’s workforce, with a clear commitment that no employee will be laid off for at least 12 months following privatization.

He added that pension and post-retirement medical liabilities of retired employees will continue to be borne by the government’s holding company.

He further clarified that PIA’s non-core assets, including the Roosevelt Hotel in New York and the Scribe Hotel in Paris, are not part of the privatization.

He said the Roosevelt Hotel site is planned to be redeveloped through a joint venture model, under which the government is expected to retain a 40–50% equity stake.

Highlighting the airline’s strategic value, Muhammad Ali said PIA continues to possess valuable landing slots at major international airports and air service agreements with 97 countries, which provide a strong foundation for revival under professional private-sector management.

He added that the privatization of PIA is not merely a transaction but a critical reform initiative aimed at reducing fiscal pressure, improving service quality, and restoring the national carrier’s competitiveness.

The process, he said, is being closely watched as a test case for Pakistan’s broader privatization agenda.

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