- Sealed bids to be submitted morning.
- Bids to be opened in afternoon.
- Process to be broadcast live nationwide.
The government will hold open bidding for the privatisation of 75% shares of Pakistan International Airlines Corporation Limited (PIACL) on Tuesday, December 23.
According to the Privatisation Commission, sealed bids will be submitted by bidders at 10:30am. The bids will be opened during a ceremony scheduled to begin at 3:30pm in the presence of the bidders.
The reference price for the bidding will be approved by the Privatisation Commission Board and the Cabinet Committee on Privatisation after the bids are received. The bids and reference prices will be announced as part of the process, which will conclude in accordance with the agreed-upon terms.
The entire bidding process will be telecast live on television and digital media. Adviser to the Prime Minister on Privatisation Muhammad Ali is scheduled to hold a press conference following the conclusion of the bidding.
Three prequalified bidders — Airblue (Pvt) Ltd; a consortium led by Lucky Cement with Hub Power Holdings, Kohat Cement and Metro Ventures; and a consortium led by Arif Habib Corporation with Fatima Fertiliser, City Schools and Lake City Holdings — have submitted the earnest money amount.
Meanwhile, Fauji Fertiliser Company Ltd, earlier viewed as a leading contender for the 75% stake in Pakistan International Airlines (PIA), had last week formally withdrawn from the privatisation bidding.
Of the amount paid for the 75% stake, 92.5% will be invested in PIA, while 7.5% will go to the government. The remaining 25% stake retained by the government is considered valuable, and bidders will have the option to acquire it later or leave it with the state.
Officials said the structure was designed to accommodate bidders interested in either 75% or full ownership. Those who do not participate in the bidding cannot later join the winning consortium, a restriction that no longer applies to Fauji Fertiliser now that it has formally withdrawn.
Under the payment terms, the winning bidder must pay two-thirds of the bid amount within 90 days, while the remaining one-third can be paid within 12 months.
The government has assured 12 months of job security for PIA employees. Pension liabilities, medical benefits, and other post-retirement perks will be handled by the holding company, while current salaries and benefits will be paid by the new owners.
PIA currently has rights to 78 destinations and holds about 170 landing slots worldwide. Officials said the airline urgently needs fresh investment and professional management to turn around its operations.
The government’s earlier bid to privatise the entity failed as a $36 million bid from a real estate firm fell short of the $305m floor price, with concerns over debt, staffing, and limited control.
This time, the government is offering full divestment, has scrapped the sales tax on leased aircraft, and is providing limited protection from legal and tax claims. Around 80% of the airline’s debt has been transferred to the state.
