The government is expected to conduct the final bidding for Pakistan International Airlines (PIA) by mid-December, the Privatisation Division secretary informed the National Assembly’s standing committee on Wednesday.
Read More: PM orders fast-track, transparent PIA privatisation
Briefing the panel chaired by MNA Farooq Sattar, he said that four pre-qualified consortia have entered the last phase of negotiations over commercial terms.
According to the secretary, discussions with the bidders now focus on share purchase and shareholders’ agreements, with pre-bid qualification talks continuing for the past three days. He added that the federal cabinet will soon be asked to approve the reserve price of the national carrier before the final bidding round.
PIA’s bidding is expected by Dec 15, 2025, after a 6-month delay. E&Y has been appointed as the consultant. This time, sales taxes will be removed, and the Roosevelt Hotel is not part of the bidding.
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Earlier in July, the Privatisation Commission Board had shortlisted four bidders — Fauji Fertiliser Company Ltd, Air Blue (Pvt) Ltd, a consortium of Lucky Cement, Hub Power Holdings, Kohat Cement and Metro Ventures, and another consortium led by Arif Habib Corporation with Fatima Fertiliser, City Schools and Lake City Holdings. In November, the board approved the inclusion of AKD Group Holdings into the Arif Habib-led consortium.
During the meeting, Farooq Sattar urged the government to ensure strong job protection measures for PIA employees and complete transparency in the sale process. He noted that the previous reserve price for the airline had been set at Rs85 billion. The committee later recommended at least five years of job protection for employees along with full safeguards for pensioners.
NA Committee Presses Govt for Clear Timeline to Conclude PIA Bidding and Speed Up Privatisation.
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Officials briefed lawmakers that PIA currently operates 18 aircraft but requires a fleet of 35 to 38 planes for sustainable operations. Future owners will be obligated to retain experienced staff to maintain operations.
Read More: Govt clears four bidders for PIA sale in major privatisation push
The Power Division also revealed that the government is considering transferring distribution companies (DISCOs) under long-term concession agreements instead of full privatisation, following a Turkish model. These agreements may extend up to 25 years, enabling private entities to invest and modernise infrastructure.
In the first phase, DISCOs in Islamabad, Gujranwala and Faisalabad will be prioritised, though delays in issuing RFPs mean the process is expected to advance by March. The division added that all three-phase meters nationwide will be replaced with AMI meters by December 2026, citing a 2% reduction in losses in the Iesco region after installing 1.5 million meters.
The committee also reviewed the long-stalled privatisation of Pakistan Engineering Company (Peco), with officials confirming that it has now been placed under the Special Investment Facilitation Council (SIFC).
Read More: PIA Privatisation Accelerates Under PM Shehbaz
A detailed progress report has been requested. Updates were also provided on the privatisation of the Roosevelt Hotel in New York, while the Ministry of Industries confirmed clearance of all pending dues of Utility Stores employees.