Arif Habib Limited Consortium on Tuesday secured a 75 percent stake in Pakistan International Airlines Corporation Limited (PIACL) with an Rs135billion offer in the government’s high-profile privatisation, conducted through a transparent bidding process broadcast live under the supervision of the Privatisation Commission.
During the first round of the sealed-bid process, the offers submitted by Arif Habib Group and Lucky Cement exceeded the base price of Rs100 billion, at Rs115 billion and Rs101.50 billion respectively, while the Airblue consortium offered Rs26.50 billion.
In the second round of the open auction, with a base price of Rs115 billion, the highest offer received in the first round, the two consortia competed strongly, but the Arif Habib Group maintained its lead and ultimately secured the stake with an unchallenged bid of Rs135 billion.
Following the successful acquisition of Pakistan International Airlines (PIA), the Arif Habib Consortium has confirmed the inclusion of Fauji Fertilizer Company as a partner in the deal.
Speaking about the partnership, representatives of the Arif Habib Group welcomed Fauji Fertilizer’s participation, emphasizing the positive impact it would bring to the airline’s revival.
A special meeting of the federal cabinet was held here at the Prime Minister’s House, during which the cabinet formally endorsed the decisions taken earlier in the day by the Cabinet Committee on Privatisation regarding PIA, a Prime Minister’s Office news release said. The cabinet also offered prayers for the smooth and successful completion of all stages of the privatisation process.
Addressing the cabinet, Prime Minister Shehbaz Sharif underscored that the PIA privatisation would be carried out in a transparent, credible and reliable manner, noting that the bidding process would be broadcast live on television. He said sealed bids would be placed in see-through boxes, with envelopes opened only after price determination, and the award would be made through a competitive process to the highest bidder.
“This is one of the largest financial transactions in Pakistan’s history, and therefore the entire process must be transparent and credible,” the prime minister said, adding that the outcome of the bidding would be brought back to the cabinet for final approval. He urged cabinet members to actively participate so decisions could be taken with collective wisdom.
The prime minister appreciated the efforts of the relevant ministries and cabinet members in advancing the privatisation agenda, particularly commending the roles of the deputy prime minister, defence minister and finance minister. He described the day as significant for PIA’s future and expressed confidence that a transparent process would improve economic management and boost private-sector confidence.
During the meeting, the prime minister congratulated the nation on Pakistan’s victory in the Under-19 cricket championship, calling it a moment of pride for the entire country. He also referred to the recent conferment of the King Abdulaziz Award on Pakistan’s field marshal in Saudi Arabia, saying the honour belonged not to an individual but to the whole nation and reflected Pakistan’s collective dignity.
In addition to PIA-related decisions, the federal cabinet approved several important policy and legislative measures. On the recommendation of the Petroleum Division, the cabinet approved the extension of the Off-Grid Power Plants Levy Act 2025 to include the sale of gas to captive power plants by third parties.
To modernise public procurement processes, the cabinet granted principled approval for amendments to the Public Procurement Regulatory Authority (PPRA) Ordinance 2002, aimed at aligning public tendering and procurement procedures with contemporary requirements.
The cabinet also approved the repeal of the National University for Security Sciences Islamabad Bill 2025, and constituted a committee to ensure effective consultation on private members’ bills and other legislation in the National Assembly.
Further, the cabinet approved the National Cannabis Control and Regulatory Policy 2025, which aims to promote the use of plant-based resources in the pharmaceutical and textile sectors under a regulated framework.
On the recommendation of the Ministry of Interior, the cabinet approved a visa clearance system designed to facilitate Pakistani citizens travelling abroad by providing a transparent and secure mechanism for visa acquisition.
The federal cabinet also ratified the decisions taken by the Cabinet Committee on Legislative Cases in its meetings held on October 20, November 5 and November 21, 2025, as well as the decisions of the Economic Coordination Committee taken in its meeting on December 18, 2025.
Prime Minister Shehbaz Sharif reaffirmed, in conclusion, that national interest would remain the guiding principle of the government’s decisions, particularly in matters concerning economic reform, political stability and public confidence.