PIA privatisation: Govt gets just Rs10bn of Rs135bn deal

ISLAMABAD (Dunya News) - The privatisation process of Pakistan International Airlines (PIA) has reached its decisive stage, with the competitive bidding for 75 percent shares successfully concluded.

Details of the transaction have been formally submitted to the Pakistan Stock Exchange (PSX), confirming that the federal government will receive just over Rs10 billion upfront from the deal, while more than Rs124 billion will be injected into the airline as fresh investment.

According to a letter sent by PIA Holding Company to the PSX, the Government of Pakistan finalized the competitive bidding process on December 23, 2025, through the Privatisation Commission. Three consortiums participated in the bidding process for the airline’s controlling stake.

The consortium led by Arif Habib Corporation emerged as the highest bidder after the reserve price was met, offering a total bid value of Rs135 billion for a 75 percent controlling stake in PIA. Under the agreed structure, the government will receive 7.5 percent of the total bid value, amounting to Rs10.125 billion, which will be transferred through PIA Holding Company.

The remaining 92.5 percent of the bid value, equivalent to Rs124.875 billion, will be invested directly into PIA Corporation Limited as capital to support operational revival and restructuring. The investment will be made in two phases, the letter stated.

In the first phase, Rs83.25 billion will be deposited as an advance into PIA Corporation Limited. The second phase will involve a payment of Rs41.625 billion, to be made over a period of 12 months.

Officials clarified that the privatisation agreement is subject to the completion of final legal documentation and approval from relevant regulatory authorities