Fauji Fertiliser Company Ltd has formally withdrawn from the bidding process for a 75% stake in Pakistan International Airlines, leaving three prequalified groups to compete for the airline’s privatisation.
The withdrawal allows Fauji Fertiliser the flexibility to join any winning consortium later, a move that would have been restricted had it submitted a bid by the December 20 deadline for earnest money.
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Previously, the Privatisation Commission Board had prequalified four bidders: Fauji Fertiliser, Airblue, a consortium led by Lucky Cement, and an Arif Habib-led consortium joined later by AKD Group Holdings to strengthen its bid.
Under the privatisation plan, bidders will compete for a 75% stake in PIA, with an option to acquire the remaining 25% within 90 days. The payment structure requires two-thirds of the amount within 90 days and the balance within 12 months.
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Of the proceeds from the 75% stake, 92.5% will be reinvested in PIA operations, while 7.5% will go to the government. Job security for employees will be guaranteed for 12 months, and pensions and benefits will remain protected.
PIA currently serves 78 destinations and holds approximately 170 global landing slots. Officials emphasise that fresh investment and professional management are critical for turning around the airline’s operational and financial performance.