Pakistan Successfully Privatizes National Flag Carrier

Pakistan organized the successful privatization of its national airline, selling it to a consortium led by a local investment company for Rs 135 billion. Arif Habib emerged as the highest bidder in an auction that was broadcast live to ensure transparency. The process marks a major economic transaction in Pakistan.

In a historic move on Tuesday, Pakistan successfully concluded the privatization of its national flag-carrier, Pakistan International Airlines (PIA), attracting a bid of Rs 135 billion from a consortium led by local investment firm Arif Habib.

The privatization ceremony, conducted in Islamabad, included bids from three pre-qualified entities: Lucky Cement, private airline Airblue, and Arif Habib. The auction process was broadcast live on local television channels for full transparency. After opening the sealed bids, Arif Habib emerged as the highest bidder with an offer of Rs 115 billion.

The government announced a reference price of Rs 100 billion and allowed the two top bidders, Arif Habib and Lucky Cement, to compete in an auction. Ultimately, Arif Habib prevailed with an unchallenged bid of Rs 135 billion. As part of the transaction, the firm committed to investing Rs 80 billion over the next five years, while 92.5% of the proceeds will support airline reinvestment.

(With inputs from agencies.)