PIA Privatization Enters Crucial Phase as Three Bidders Step Forward

Islamabad: Pakistan’s long-delayed effort to privatise its struggling national airline has reached a decisive moment, as the government received three formal bids for Pakistan International Airlines (PIA) on Tuesday. The development is being closely watched as a major test of Islamabad’s broader plan to offload loss-making state enterprises under its ongoing IMF bailout programme.

The bidding process, broadcast live to ensure transparency, drew participation from three powerful consortiums. One bid is led by private airline Air Blue, another by Lucky Cement, while the third comes from investment group Arif Habib. All three are competing for a 75% stake in PIA.

Prime Minister Shehbaz Sharif, addressing his cabinet, described the process as historic and stressed the need for complete openness. “This is one of the biggest transactions in Pakistan’s history,” he said, underlining the importance of restoring investor confidence.

Why This Sale Matters

The government is expected to announce a reference price on Wednesday, after which a winning bidder will be declared if the minimum valuation is met. The stakes are high. A previous attempt to sell PIA last year collapsed after attracting just one bid of $36 million, far below the government’s target of $300–305 million.

PIA’s financial troubles have worsened as Pakistan battles a balance-of-payments crisis. Once a symbol of national pride, the airline has suffered from years of mismanagement, mounting debt, and shrinking government support. In 2022, it reported losses despite revenues exceeding $800 million and was later delisted.

A Troubled Past, Uncertain Future

Founded in 1955, PIA was once regarded as one of Asia’s leading airlines. However, safety concerns and financial losses severely damaged its reputation. In 2020, it was banned from flying to the EU, UK, and US following a deadly crash. While flights to Europe and Britain resumed this year, US operations remain suspended.

Currently, only 18 of PIA’s 34 aircraft are operational, highlighting the scale of challenges facing any potential buyer.

The airline’s sale is part of Pakistan’s commitment to privatise dozens of state-owned firms by 2029 under a $7 billion IMF loan agreement signed in 2024.