The government of Pakistan has approved four key groups to move forward in the bidding process for the sale of Pakistan International Airlines (PIA). The move is part of a major plan to sell 51% to 100% shares of the debt-ridden airline. This sale aims to cut financial losses, attract investment, and fulfill targets under the country’s $7 billion IMF programme.
This would be Pakistan’s first major privatisation in nearly two decades. The step is seen as crucial for reforming state-owned enterprises (SOEs) that have long drained public funds. Privatisation Minister Muhammad Ali said that the shortlisted bidders will now begin buy-side due diligence, which includes reviewing PIA’s financial and operational data in detail.
Among the bidders, one consortium includes Lucky Cement, Hub Power Holdings, Kohat Cement, and Metro Ventures—all major names in Pakistan’s industrial sector. Another group is led by Arif Habib Corporation, and features Fatima Fertiliser, Lake City Holdings, and The City School, showing interest from a wide business spectrum including education, real estate, and manufacturing.
Additionally, two other contenders include Fauji Fertiliser Company, a powerful military-backed conglomerate, and Airblue, a private Pakistani airline. Their inclusion reflects strong interest from both corporate and aviation sectors. The final bidding and negotiations are expected to happen in the fourth quarter of 2025 after the due diligence phase ends.
The Roosevelt Hotel in New York, a PIA-owned asset, is also part of the privatisation plan. The Cabinet Committee on Privatisation has approved its transaction structure, offering options for either a direct sale or a long-term lease. The government expects over $100 million in initial earnings from the hotel deal within this year, providing much-needed foreign reserves.