Pakistan’s Privatisation Commission is set to receive bids for a 75 per cent stake in Pakistan International Airlines (PIA) Corporation Ltd on December 23, with three bidders remaining after the withdrawal of Fauji Fertiliser Company Ltd. The bidding and opening process will be conducted under a publicly announced schedule and broadcast live to ensure transparency.
Read More: Race heats up for PIA privatisation as four bidders pre-qualified
According to the commission, sealed bids will be submitted late morning before being opened later in the day following approval of a reference price by the Cabinet Committee on Privatisation. The remaining contenders include two local business consortiums and private carrier Air Blue, keeping competition alive for the national airline.
پی آئی اے کے اثاثوں کی ویلیوایشن تھرڈ پارٹی پروفیشنل ویلیوئرز نے کی ہے۔ ریٹائرڈ ملازمین کے پنشن، میڈیکل اور سبسڈی ٹکٹ معاہدے برقرار رہیں گے۔ موجودہ ملازمین کے حقوق/وعدوں کی تکمیل اور کم از کم 12 ماہ تک جبری برطرفی نہ ہونے کا مؤقف۔#PIA #Privatisation #Pakistan pic.twitter.com/ZuPcmUfMFQ
— Ministry of Privatisation, Government of Pakistan (@PrivComPakistan) December 21, 2025
PIA Privatization: A Game-Changer on the Horizon
The upcoming privatization of Pakistan International Airlines (PIA) — with bidders set to meet on December 23, 2025 — could be a defining moment for Pakistan’s economic reform agenda. If successful, it will be the first major… pic.twitter.com/MxicktQffj
— Mohammed Sohail (@sohailkarachi) December 20, 2025
Privatisation Commission Chairman and Adviser to the Prime Minister on Privatisation Muhammad Ali said the reference price would be fixed before bids are opened and publicly announced. If bids exceed the reference price, an open auction will follow, while bids below it will be considered on the basis of the highest offer.
Under the transaction structure, 92.5 per cent of the proceeds from the 75 per cent sale will go directly to PIA, with the remainder flowing to the national exchequer. The government will retain a 25 per cent stake, which the successful bidder may choose to acquire later at a premium.
The winning bidder will be required to deposit two-thirds of the bid amount within 90 days, with the remaining payment due within a year. Liabilities of Rs26 billion will remain with PIA and be paid over five years, while no employee layoffs will be allowed for at least one year.
Officials believe successful privatisation could help revive the airline and strengthen the aviation sector’s contribution to the economy. With extensive landing rights, international routes and growth potential, PIA is seen as an asset that could improve performance under private-sector management.