Three Bids Emerge for Pakistan International Airlines Stake: Will Privatisation

Pakistan's government received three bids for the Pakistan International Airlines privatization on Tuesday, December 23, 2025. This marks a major step in the long-delayed sale of the national carrier. The process is a key part of the country's economic reform agenda.

Prime Minister Shehbaz Sharif stressed the need for a transparent process. The bidding for the PIA 75% stake sale was broadcast live. This transaction is considered the largest in Pakistan's history.

Key Bidders and Financial Context

Three groups submitted sealed offers for the controlling stake. The bidders include a consortium led by Lucky Cement, one led by Arif Habib Corporation, and private carrier Airblue. The Lucky Cement and Arif Habib groups are seen as frontrunners.

Government officials will now review the bids. The Privatisation Commission approved a reference price on Tuesday. This price must be met for a winner to be announced. A previous national carrier divestment attempt failed. That auction only drew a single bid of $36 million. This was far below the government's $300–$305 million target.

PIA's financial health has improved ahead of the sale. Islamabad assumed most of the airline's legacy debt. The carrier recently posted its first pre-tax profit in two decades. In 2022, before being delisted, PIA reported a net loss of $437,000. This was on revenue of $854,000.

IMF Mandate and Strategic Importance

The sale is a critical structural reform. It is mandated under a $7 billion IMF loan program. The IMF-mandated state firm sale aims to curb fiscal drains. Pakistan pledged to divest dozens of state-owned enterprises by 2029. These companies have often incurred billions in losses. The privatization is crucial for Pakistan's overall economic stability.

A successful sale will allow 92.5% of the proceeds to be reinvested into the airline. This is intended to fund a significant turnaround.

International Route Resumption

PIA's market value is boosted by the lifting of key flight bans. The European Union Aviation Safety Agency (EASA) lifted its ban in November 2024. The UK followed, lifting its ban in July 2025. This allows flights to Europe and Britain to resume. The bans were put in place in 2020 after a fatal crash and a pilot license scandal. Resuming these long-haul routes is vital for revenue.

However, operations to the United States have not yet restarted. The Federal Aviation Administration (FAA) reclassification is still pending. The airline is working to be reclassified to Category One status. This would allow direct flights to the US to resume.

PIA's operational fleet currently stands at 18 aircraft. The total fleet size is 34 planes. The winning bidder will face the challenge of fleet modernization. They must also restore the airline's international reputation. The entire process is a major test for Pakistan aviation reform and a key piece of commercial aviation news. For more updates on flight operation news, visit flying.flights.