Key Bidder Quits Pakistan International Airlines Privatization Race: What

December 21, 2025 at 11:01 PM•2 min read

[Pakistan International Airlines](https://www.piac.com.pk) privatization faced a setback as Fauji Fertiliser withdrew, leaving three bidders to submit

Key Points

1Fauji Fertiliser Company Ltd. formally withdrew from the [Pakistan International Airlines](https://www.piac.com.pk) privatization bid after failing to deposit earnest money by the December 20 deadline.
2The withdrawal was a strategic move, allowing Fauji Fertiliser the option to join a winning consortium later, which is otherwise prohibited.
3Three prequalified bidders remain in the race, including [Airblue](https://www.airblue.com) and two major domestic consortiums, with sealed bids scheduled for December 23.
4The privatization plan offers a 75% stake in [PIA](https://www.piac.com.pk), with 92.5% of the proceeds earmarked for reinvestment into the airline's operations.

The privatization of Pakistan International Airlines privatization (PIA) has hit a snag. Fauji Fertiliser withdraws from the bidding process. The company was a key prequalified contender. This withdrawal comes just before the deadline for sealed bids. PIA is the country's national flag carrier.

Officials from the Privatisation Commission confirmed the news. Fauji Fertiliser Company Ltd. did not deposit the required earnest money. The deadline for this deposit was Saturday, December 20.

The Strategic Rationale Behind the Exit

Fauji Fertiliser's decision is highly strategic. By not submitting a bid, the company retains flexibility. It can now potentially join a successful consortium later. Had it submitted a formal bid, this option would be restricted. This move highlights the complex nature of the PIA 75 percent stake sale.

Three Contenders Remain in the Race

With Fauji Fertiliser’s exit, three prequalified parties remain. They are set to submit sealed bids on December 23. This marks a critical step in the process.

The remaining PIA bidders include:

Airblue (Pvt) Ltd.
A consortium led by Lucky Cement, including Hub Power Holdings and Kohat Cement.
A consortium led by Arif Habib Corporation, including Fatima Fertiliser and AKD Group Holdings.

Privatization Structure and Financial Outlook

The government is offering a 75 percent stake in PIA. The winning bidder will have an option to buy the remaining 25% share. This option is available within a 90-day window.

Crucially, 92.5% of the bid proceeds will be reinvested into PIA. Only 7.5% will go to the government. This structure is designed to support airline fleet revamping. The goal is to ensure the airline's long-term revival.

The Privatisation Commission Board will approve the reserve price.
Bids will be opened publicly after this approval.

Operational Context and Market Access

PIA urgently needs fresh capital and professional management. The airline serves 78 destinations globally. It holds approximately 170 international landing slots.

In a positive development, the European Union Aviation Safety Agency (EASA) lifted its ban in late 2024. The UK also lifted its ban in mid-2025. This restored access to key European routes. This is vital for the airline's valuation and recovery.

The sealed bids deadline is a pivotal moment for Pakistan's aviation sector. A successful sale is seen as essential. It will restore the national flag carrier to financial stability. This is a significant development in commercial aviation news.