Pakistan draws several bidders for loss-making national airline PIA

June 19, 2025 (MLN): Pakistan’s move to privatize its national airline has attracted interest from several prominent players, including domestic carrier Airblue Ltd. and travel conglomerate Gerry’s Group.

Airblue Managing Director Aslam Chaudhary and Gerry’s Group Managing Director Akram Wali Muhammad both confirmed to Bloomberg News their intentions to participate in the sale, which offers a 51% to 100% stake in Pakistan International Airlines (PIA).

Additionally, renowned businessmen Muhammad Ali Tabba and Arif Habib have each formed separate consortia to bid for the airline. Speaking in a phone interview, Arif Habib said he has joined forces with Fatima Fertilizer Ltd., Lake City, and The City School.

Meanwhile, one of Pakistan’s largest business groups, Yunus Brothers Group, is also reportedly in the running.

According to sources familiar with the matter, who declined to be identified due to the sensitivity of the process, the group is bidding through a consortium that includes Mega Group, Kohat Cement Co., and Metro Group.

Fauji Fertilizer Co. also announced its interest ahead of Thursday’s deadline for submitting expressions of interest in the transaction.

The sale of PIA is a key component of the economic reform commitments Pakistan made to the International Monetary Fund under its ongoing loan program.

As part of this broader privatization effort, the government also plans to sell the Roosevelt Hotel in New York later this year, along with power distribution companies by June 2026.

This is not the first attempt to offload the struggling carrier. In a previous effort last year, several parties expressed interest; however, only one Blue World City submitted a final bid, which fell well short of the government’s minimum price of around $300 million.

To boost investor interest this time, the government has revised the terms of the deal.

These changes include exempting the purchase of new aircraft from sales tax, lowering PIA’s debt levels, and offering coverage for certain tax and litigation claims.