Pakistan’s ambitious privatization initiative for its national carrier reached a critical juncture on Tuesday as three prominent consortiums submitted formal bids for a controlling 75% stake in Pakistan International Airlines (PIA). The bidding process, conducted with unprecedented transparency and broadcast live nationwide, represents a watershed moment in Islamabad’s efforts to reform its state-owned enterprises.
The consortiums, led by private carrier Air Blue, industrial giant Lucky Cement, and investment firm Arif Habib Corporation, formally deposited their proposals in a transparent container during a ceremony overseen by government officials. Prime Minister Shehbaz Sharif characterized the event as “essential transparency” for what he described as “the biggest transaction in Pakistan’s history.”
This privatization attempt follows a failed 2024 effort that attracted merely one bid worth $36 million—dramatically below the government’s $300 million valuation threshold. The airline’s financial distress is substantial, having reported a $437 million net loss against $854 million revenue in 2022 before its delisting from the stock exchange.
The government will establish a reference price on Wednesday, with the winning bidder to be announced pending minimum price fulfillment. This divestment forms part of Pakistan’s broader commitment under its $7 billion International Monetary Fund program to privatize dozens of loss-making state enterprises by 2029.
PIA’s operational challenges remain significant. Currently, only 18 of its 34 aircraft remain active, and despite recent reinstatement of European and British flight permissions, the carrier remains excluded from US routes. The airline’s reputation has been severely damaged by financial mismanagement and safety concerns, notably the May 2020 Airbus A-320 crash in Karachi that claimed 98 lives and triggered international flight bans.
Founded in 1955 as a symbol of national progress, PIA’s potential privatization marks a historic shift in Pakistan’s approach to state-owned enterprise reform and economic stabilization.