ISLAMABAD: Pakistan on Tuesday moved closer to privatizing its national flag carrier as the bidding process for Pakistan International Airlines Corporation Limited (PIACL) entered its decisive stage, marking one of the government’s most significant state-owned enterprise reform initiatives.

Three consortia, led by AirBlue, Arif Habib Private Limited, and Lucky Cement, are competing to acquire a 75% stake in the airline. The process follows Fauji Fertilizer Company (FFC) withdrawing from the bidding race, though FFC retains the option to join the winning consortium at a later stage.

According to privatization minister Muhammad Ali, the two unsuccessful bidders will be excluded from any future role in the airline’s management. He explained that losing bidders would have no right to join the winning bidder, and only groups that were not parties to the auction would be able to enter the new management.

To safeguard the integrity of the privatization, the government has introduced a key condition preventing unsuccessful bidders from participating in the airline’s future management. Privatization minister Ali said this measure aims to ensure transparency and avoid post-auction arrangements that could undermine competition.

Under the announced schedule, sealed bids were submitted to the Privatization Commission at 10:30 a.m., while the bids are set to be opened at 3:30 p.m. in a formal ceremony attended by the bidders. The reference price for the transaction will be approved by the Privatization Commission Board and the Cabinet Committee on Privatization only after bids are received.

The entire bidding process is being broadcast live on television and digital platforms to reinforce transparency.

Ahead of the auction, reports emerged of informal discussions between some bidding groups regarding a potential shared stake. However, Lucky Cement Chairman Muhammad Ali Tabba and government officials clarified that these interactions were private in nature and not facilitated by the government, and that they had no impact on the bidding process.

Officials remain confident that the current auction will avoid the shortcomings of the previous privatization attempt, when a single bidder offered Rs10 billion for a 60% stake, far below the reference price of Rs85 billion, leading to the cancellation of the sale.

The government views the privatization of PIA as a critical step towards improving operational efficiency, reducing fiscal burden, and attracting long-term private investment into Pakistan’s aviation sector.

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Privatization process of Pakistan International Airlines kicks off