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Pakistan’s debt-ridden Pakistan International Airlines (PIA) has finally been sold after an aggressive bidding at a ceremony in Islamabad. After years of losses, bailouts and failed privatisation, the Pakistani government found some serious takers and sold it in the bidding process.
The government had attempted to sell the airline last year; however, it did not receive any worthwhile offers. Once a symbol of Pakistan’s national ambition and pride, ended up being a financially distressed airline in the world.
On December 23 (Tuesday), the Arif Habib consortium emerged victorious in the PIA auction with a Rs 135 billion bid. Lucky Cement and Airblue were the other two bidders.
Pak’s loss-making PIA sold
Ahead of the auction, PIA had three bidders on the table: Lucky Cement, a business group led by Muhammad Ali Tabba, a prominent Pakistani Industrialist, the Arif Habib group, a well-known entity in Pakistan’s financial and investment circle, and Airblue, one of Pakistan’s leading private airlines.
During the first round, Lucky Cement put up a bid of Rs 101.5 billion, Airblue Rs 26.5 billion, and the Arif Habib consortium bid the highest, at Rs 115 billion. After the first bidding, the reference price was announced; however, Airblue exited the race after the first round of bidding.
The Dawn reported that the second round started with the base bid at Rs 115 billion, and the increment was at Rs 250 million. Based on the highest bidding during the first round, the base price was set. In the same round, when Lucky Cement raised the bid to Rs 134 bn, Arif Habib countered with Rs 135 bn.
Arif Habib on acquiring the national airline
After emerging victorious in the PIA auction with a Rs 135 bn bid, business owner Arif Habib asserted that “privatisation will promote investment in Pakistan” as quoted by the Dawn.
“PIA is our national institution. The national airline has witnessed days of glory and was once ranked number two in the world. All its employees are very competent,” Habib furthered. The
Pakistani business tycoon told Geo News that “he was willing to bring in foreign airlines once the transaction was completed.”
At this stage, the sale will involve 75 per cent of the shares of Pakistan International Airlines, and the winning bidder will have 90 days to acquire the remaining 25 per cent.
According to a TOI report, 92.5 per cent will be invested in the airline, a greater portion of the money gained from the sale of the national carrier. This deal will require Arif Habib to invest an additional Rs 80 billion in the airline over the next five years.
Reactions from PM Shehbhaz Sharif and others
Reacting to the bidding, Pakistan Prime Minister Shehbaz Sharif lauded the sale as “a historic day for Pakistan”.
In a post on X, Sharif said, “The successful completion of the transparent and highly competitive bidding process for the privatisation of PIA marks an important milestone in fulfilling that commitment.
“The strong participation of our leading business groups and some of Pakistan’s most seasoned and respected investors is a powerful vote of confidence in our economy and its future. Pakistan would be the ultimate winner, and today’s outcome fully vindicates that belief,” he added.
Interior Minister Mohsin Naqvi also hailed the sale, saying, “Pakistan has won today. We are all looking forward to travelling through PIA again.”
As reported by the Dawn, Finance Minister Muhammad Aurangzeb hoped that the PIA sale would bring investment and further increase the number of local investors.
While speaking to Geo News, Pakistan's economist and policy expert, Khaqan Najeeb, described it as a “good start,” adding that after 19-20 years, the nation has successfully privatised a major institution.
Rise and Collapse of PIA
PIA was founded on October 29, 1946, by Mirza Ahmad Ispahani and business tycoon Adamjee Haji Dawood in Calcutta, according to a NDTV report. After Pakistan's creation in 1947, it became the first airline to support the nation's domestic and international travel needs. PIA also became the second Asian airline to operate Boeing 707 jets in 1960, as per the media outlet. It was once dubbed a world-class carrier.
However, the cracks from a safety crisis, cancellations, chaos and debt plunged the airline into the darker chapter of aviation. As per an NDTV report, the airline reported a loss of over Rs 75 billion in 2023, and the total liabilities stood at staggering Rs 825 billion. Privatisation was the only option left after the airline became a financial black hole for years.
With inputs from agencies
The government had attempted to sell the airline last year; however, it did not receive any worthwhile offers. Once a symbol of Pakistan’s national ambition and pride, ended up being a financially distressed airline in the world.
On December 23 (Tuesday), the Arif Habib consortium emerged victorious in the PIA auction with a Rs 135 billion bid. Lucky Cement and Airblue were the other two bidders.
Pak’s loss-making PIA sold
Ahead of the auction, PIA had three bidders on the table: Lucky Cement, a business group led by Muhammad Ali Tabba, a prominent Pakistani Industrialist, the Arif Habib group, a well-known entity in Pakistan’s financial and investment circle, and Airblue, one of Pakistan’s leading private airlines.
During the first round, Lucky Cement put up a bid of Rs 101.5 billion, Airblue Rs 26.5 billion, and the Arif Habib consortium bid the highest, at Rs 115 billion. After the first bidding, the reference price was announced; however, Airblue exited the race after the first round of bidding.
The Dawn reported that the second round started with the base bid at Rs 115 billion, and the increment was at Rs 250 million. Based on the highest bidding during the first round, the base price was set. In the same round, when Lucky Cement raised the bid to Rs 134 bn, Arif Habib countered with Rs 135 bn.
Arif Habib on acquiring the national airline
After emerging victorious in the PIA auction with a Rs 135 bn bid, business owner Arif Habib asserted that “privatisation will promote investment in Pakistan” as quoted by the Dawn.
“PIA is our national institution. The national airline has witnessed days of glory and was once ranked number two in the world. All its employees are very competent,” Habib furthered. The
Pakistani business tycoon told Geo News that “he was willing to bring in foreign airlines once the transaction was completed.”
At this stage, the sale will involve 75 per cent of the shares of Pakistan International Airlines, and the winning bidder will have 90 days to acquire the remaining 25 per cent.
According to a TOI report, 92.5 per cent will be invested in the airline, a greater portion of the money gained from the sale of the national carrier. This deal will require Arif Habib to invest an additional Rs 80 billion in the airline over the next five years.
Reactions from PM Shehbhaz Sharif and others
Reacting to the bidding, Pakistan Prime Minister Shehbaz Sharif lauded the sale as “a historic day for Pakistan”.
In a post on X, Sharif said, “The successful completion of the transparent and highly competitive bidding process for the privatisation of PIA marks an important milestone in fulfilling that commitment.
Alhamdolilah! A historic day for Pakistan 🇵🇰
It was our firm commitment to the people of Pakistan that speedy and concrete steps would be taken to privatise loss-making state-owned enterprises that have been a burden on the economy.
The successful completion of the transparent…
— Shehbaz Sharif (@CMShehbaz) December 23, 2025
“The strong participation of our leading business groups and some of Pakistan’s most seasoned and respected investors is a powerful vote of confidence in our economy and its future. Pakistan would be the ultimate winner, and today’s outcome fully vindicates that belief,” he added.
Interior Minister Mohsin Naqvi also hailed the sale, saying, “Pakistan has won today. We are all looking forward to travelling through PIA again.”
As reported by the Dawn, Finance Minister Muhammad Aurangzeb hoped that the PIA sale would bring investment and further increase the number of local investors.
While speaking to Geo News, Pakistan's economist and policy expert, Khaqan Najeeb, described it as a “good start,” adding that after 19-20 years, the nation has successfully privatised a major institution.
Rise and Collapse of PIA
PIA was founded on October 29, 1946, by Mirza Ahmad Ispahani and business tycoon Adamjee Haji Dawood in Calcutta, according to a NDTV report. After Pakistan's creation in 1947, it became the first airline to support the nation's domestic and international travel needs. PIA also became the second Asian airline to operate Boeing 707 jets in 1960, as per the media outlet. It was once dubbed a world-class carrier.
However, the cracks from a safety crisis, cancellations, chaos and debt plunged the airline into the darker chapter of aviation. As per an NDTV report, the airline reported a loss of over Rs 75 billion in 2023, and the total liabilities stood at staggering Rs 825 billion. Privatisation was the only option left after the airline became a financial black hole for years.
With inputs from agencies
