All eyes on PIA as govt looks to offload major liability today
• Minister says unsuccessful bidders won’t have any role in running airline
• Insiders say proposal for three-way control of airline ‘turned down’ by sceptical bidders
ISLAMABAD: With the privatisation of Pakistan International Airlines Corporation Limited (PIACL) — the country’s most high-profile transaction of a state-owned entity — scheduled for today (Tuesday), the government is making all-out efforts to prevent a repeat of what happened the last time the airline went under the hammer.
Three parties are currently in the hunt to acquire 75pc shares in the flag carrier — consortiums led by AirBlue, Arif Habib Pvt Ltd and Lucky Cement, following the exit of the Fauji Fertiliser Company (FFC).
But thanks to a unique stipulation, the two unsuccessful bidders will be excluded from any future role in the airline’s management, according to Privatisation Minister Muhammad Ali.
In recent remarks, the minister explained that losing bidders will have no right to join the winning bidder, and only those groups who were not party to the auction would be able to join the new management.
This means that while only one of the three consortiums currently in the running for the flag carrier will become part of its administration upon acquisition of a majority stake, FFC retains the option to join with them subsequently, if it wishes to.
Ahead of Tuesday’s bidding, reports surfaced of a behind-the-scenes deal involving at least two of the parties involved — the Arif Habib and Lucky Cement groups — that reportedly fell through.
In a tweet, journalist Kamran Khan alluded to a meeting where it was proposed to split the controlling stake among three of the four interested parties. However, Mr Khan claimed, this arrangement fell through as one of the parties — i.e. the Muhammad Ali Tabba-led Lucky Cement group — did not agree to it.
Both Mr Tabba and a high-ranking government official privy to developments confirmed this, but clarified that this was not a government-brokered meeting, but rather an informal interaction.
Talking to Dawn, Mr Tabba expressed unwavering confidence in the privatisation process, and clarified that the proposal was floated to him after a meeting in Islamabad, which he did not pursue.
On Monday, the Privatisation Commission announced that sealed bids will be submitted around 10:30am on Tuesday by the bidders.
The reference price for the bidding will only be approved by the Privatisation Commission Board and the Cabinet Committee on Privatisation after bids have been received.
The bids will then be opened in a ceremony, scheduled for 3:30pm, in the presence of the bidders.
Adviser to the Prime Minister on Privatisation, Muhammad Ali will also hold a press conference after the conclusion of the bidding process. The whole process would be telecast live and streamed across all TV channels as well as respective social media handles of the government, which will be hoping to avoid a repeat of the last time the airline went under the hammer.
At the time, only one bidder had come forward to participate in the auction, and Blue World City offered a paltry Rs10bn bid for a 60pc stake in the flag carrier, against the reference price of Rs85bn.
The Privatisation Commission said it had asked the bidder to match the minimum bid, but Blue World City declined to do so.
Published in Dawn, December 23rd, 2025
