“The first phase of the bidding process has been completed; now the matter will go to the Privatisation Commission,” said Privatisation Commission (PC) Chairman Muhammad Ali.
The PC board meeting is in progress to determine the reference prices.
PC Board Meeting in progress: the Privatisation Commission Board is underway for determination of the reference prices a key step supporting a structured, transparent process.
https://t.co/84NmfWfgZb#PrivatisationCommission #Transparency #Governance #Privatisation #Pakistan pic.twitter.com/FFOx2YAUQW
— Ministry of Privatisation, Government of Pakistan (@PrivComPakistan) December 23, 2025
The bids came from pre-certified bidders Lucky Cement, private airline Airblue and investment firm Arif Habib. Fauji Fertiliser and other bidders have pulled out of the auction. If the bids exceed the reserve price, an open auction will take place. If not, the highest bidder will be allowed to match the price.
Once the successful bidder is identified, the bidder will have 90 days to purchase the remaining 25% of shares. The government had taken responsibility for PIA’s liabilities of Rs 654 billion last year. New investors are required to commit an investment of Rs80 billion over the next five years. Of the proceeds from the sale of 75% of PIA’s shares, 92.5% will be allocated to the airline for reinvestment, while the remaining 7.5% will be transferred to the government.
The PC has received all bids and the PC board will review and discuss PIA’s reserve price, of which the exact figure remains undisclosed. Ali emphasised that once the reserve price is approved by the board, it will be forwarded to the Cabinet Committee for final approval.
The government claims that this privatisation is crucial for the airline’s financial health and profitability. “No major privatisation of a national asset has taken place in the last 20 years, making this move historic for Pakistan,” Ali said.
Chairman of Privatisation Commission, Muhammad Ali, has just shared a major update on the sale of PIA. The bidding process is entering its final hours!#PIA #Privatisation #Pakistan #Aviation #BusinessNews pic.twitter.com/lh1fuObsHQ
— Ministry of Privatisation, Government of Pakistan (@PrivComPakistan) December 23, 2025
Push for privatisation
PIA, which has been operating at a loss for several years, has been a target for privatisation by previous governments. The airline has struggled with mounting debts, outdated fleets, and an inability to keep pace with the competition. Past attempts at privatisation have faced obstacles, but the current administration appears determined to push ahead with this reform.
In a move to safeguard PIA’s workforce, the PC has stated that employee job security will be guaranteed for one year. Additionally, the holding company will be responsible for managing pension plans and post-retirement benefits.