In a historic move, the Arif Habib consortium has emerged as the highest bidder to acquire a 75% stake in Pakistan International Airlines Corporation Ltd (PIAC), placing a final offer of Rs. 135 billion. The auction, Pakistan’s first significant privatization in nearly twenty years, opened on Tuesday with pre-qualified participants including Lucky Cement, Airblue, and Arif Habib.
Airblue exited the bidding early after offering Rs. 26.5 billion, which fell below the reference price. Lucky Cement initially bid Rs. 101.5 billion, while Arif Habib led with Rs. 115 billion.
After a brief 30-minute pause requested by Lucky Cement, the auction resumed with a reference price of Rs. 125 billion. Lucky Cement raised its bid to Rs. 120.25 billion, only for Arif Habib to respond with Rs. 121 billion. The second round began with a base of Rs. 115 billion, requiring minimum increments of Rs. 250 million.
Ultimately, the consortium’s Rs. 135 billion bid secured the sale, ushering in a new chapter for Pakistan’s national carrier. Officials confirmed that 92.5% of the proceeds will be reinvested, with the remaining 7.5% allocated to the government. The winning consortium will also have the option to include up to two additional partners in the PIAC ownership group.
