KARACHI – PIA privatization bid 2025. Pakistan’s latest effort to privatize its loss-making national airline gained traction on Thursday as five investor groups submitted qualification documents to the Privatization Commission, reigniting hope for a successful divestment after years of failed attempts.
This move is part of the government’s broader strategy to fulfill IMF-mandated structural reforms and stabilize its economy, which has recently shown modest signs of improvement.
Five Groups Submit SOQs in Latest Round
According to an official statement, the Privatization Commission received Statements of Qualification (SOQs) from five parties by the final deadline. This follows an earlier Expression of Interest (EOI) submission from eight groups, out of which five moved forward.
The bidding groups include:
- A consortium of Lucky Cement, Hub Power Holdings, Kohat Cement, and Metro Ventures
- A group led by Arif Habib Corporation, partnered with Fatima Fertilizer, City Schools, and Lake City Holdings
- Air Blue Limited, a private airline
- Fauji Fertilizer Company Limited, a military-backed organization
- A consortium comprising Serene Air, Augment Securities, Bahria Foundation, Mega C&S Holding, and Equitas
These parties will now undergo evaluation against prequalification benchmarks, after which they will access a virtual data room to conduct due diligence for the next phase.
Past Failures and Present Optimism
The government’s previous attempt to privatize Pakistan International Airlines Corporation Limited (PIACL) in 2024 failed when it received only one bid worth Rs10 billion ($36 million)—far below the floor price of Rs85 billion ($305 million). The sale was canceled due to the unattractive financials and weak buyer interest.
This time, the government aims to sell between 51% and 100% of its stake in PIA, along with management control, signaling its seriousness about turning the airline around.
From Bailouts to Operational Profit
PIA has historically been a fiscal burden on the national budget, surviving primarily on government bailouts. However, after a series of operational and structural changes, the airline recorded an operating profit of Rs9.3 billion ($33.1 million) in April 2025, its first profit in 21 years.
This turnaround has reignited investor interest, especially as Pakistan pushes to reduce its reliance on state-owned entities and improve financial discipline under IMF pressure.
What Comes Next
According to the Privatization Commission, the next stage involves evaluating the submitted SOQs and shortlisting qualified candidates. These prequalified parties will access confidential company data through a secure platform to conduct a comprehensive financial and legal review before submitting final bids.
If successful, the transaction will not only offload a major fiscal liability but also mark a significant milestone in Pakistan’s privatization roadmap.
