Pakistan Approves Four Bidders for PIA Privatization

Pakistan has taken a significant step toward privatizing its national carrier, Pakistan International Airlines (PIA), by approving four potential investors to proceed to the next phase of the divestment process. On July 9, 2025, the Ministry of Privatization confirmed that two consortiums and two individual entities had passed the prequalification stage, marking a key milestone in the government’s efforts to revive the struggling airline.

The decision was formalized during a meeting chaired by Muhammad Ali, Adviser to the Prime Minister on Privatization, held in Islamabad. Among the approved bidders is Airblue, a private Pakistani airline, and Fauji Fertilizer, one of the country’s leading agribusinesses. The first consortium comprises Lucky Cement, Hub Power, Kohat Cement, and Metro Ventures, while the second includes Arif Habib, Fatima Fertilizer, City Schools, and Lake City Holdings.

These four parties were shortlisted after a comprehensive review process that examined Statements of Qualification submitted by five prospective bidders. The government emphasized that the selection followed rigorous scrutiny to ensure transparency and competitiveness in the privatization initiative.

With prequalification now complete, the selected bidders will move into the buy-side due diligence phase. This next step involves a detailed assessment of PIA’s operations, assets, liabilities, and financial position before final bids are submitted.

The government is aiming to sell at least a 51 percent controlling stake in PIA but has indicated it may consider divesting its entire ownership depending on the outcome of future negotiations with investors.

PIA has struggled for years with financial losses, operational inefficiencies, and safety controversies. In 2020, the United Kingdom banned all Pakistan-based airlines, including PIA, following a scandal involving pilots found to have falsified credentials. The ban coincided with a similar suspension by the European Union Aviation Safety Agency (EASA), which was only lifted at the end of 2024, allowing PIA to resume operations in Europe after a nearly five-year hiatus.

The revival of investor interest and the lifting of regulatory bans signal a potential turning point for PIA, which has long been burdened by debt, mismanagement, and loss-making routes. The privatization is seen as a critical step not only to restore financial stability but also to modernize the airline’s operations and reestablish international credibility.

Privatizing PIA is part of Pakistan’s broader economic reform plan to reduce the fiscal burden of loss-making state-owned enterprises. By bringing in experienced private-sector partners, the government hopes to transform the airline into a viable, competitive player in both regional and global markets.

With four vetted bidders moving forward, all eyes are now on the due diligence phase, which will determine the future structure and leadership of PIA, as well as the direction of one of South Asia’s oldest national carriers.

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