Privatization of Pakistan International Airlines Corporation Limited

PIA Holding Company Limited (PIAA) announced that PIAA wishes to inform its shareholders and the general public that on December 23, 2025, the Government of Pakistan, through the Privatisation Commission, conducted a publicly televised, competitive bidding process for the divestment of 75 percent of the issued share capital of Pakistan International Airlines Corporation Limited (PIACL), a major subsidiary of PIAA.

The bidding process was carried out in accordance with the applicable privatization framework. Three pre-qualified bidders participated in the process, namely: a consortium led by Arif Habib Corporation Limited (AHL), a consortium led by Lucky Cement Limited (LUCK), and Airblue (Private) Limited. Following the opening of sealed bids, disclosure of reserve price and the competitive bidding phase, the consortium led by Arif Habib Corporation Limited emerged as the successful bidder, having submitted the highest offer of PKR 135 billion for a 75 percent controlling stake in PIACL.

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According to the set terms of this transaction, 7.5% (PKR 10.125 billion) of the bid amount will be received by the Government of Pakistan through PIAA, whereas the remaining 92.5% (PKR 124.875 billion) of the bid amount will be invested in PIACL in form of new equity via ‘Rights Issue’ in two tranches i.e. two-third as upfront payment (PKR 83.25 billion) and one-third as the second tranche (PKR 41.625 billion) to be invested within 12 months of Financial Close.

PIAA will assess and disclose, as appropriate, the impact of the proposed transaction on PIAA, including changes in ownership and governance structure, management control, financial position, and consolidation status of PIACL, during the completion/closure process of this transaction.

⚠️ This post reflects the author’s personal opinion and is for informational purposes only. It does not constitute financial advice. Investing involves risk and should be done independently. Read full disclaimer →