Pakistan Approves Bidders for PIA Stake

The Pakistani government announced on Tuesday the approval of four entities, including business conglomerates and a firm with military backing, to participate in the bidding process for a share in the financially troubled Pakistan International Airlines (PIA).

This move is part of Pakistan’s strategy to divest between 51% and 100% of its stake in the struggling national carrier. The objective is to generate revenue and implement reforms within its state-owned enterprises, a key requirement of its $7 billion agreement with the International Monetary Fund.

This privatization initiative marks the country’s most significant effort in this area for almost two decades.

List of Approved Bidders
  • One bidding group comprises a consortium of major industrial players such as Lucky Cement, Hub Power Holdings, Kohat Cement, and Metro Ventures.
  • Another group is spearheaded by Arif Habib Corp and includes Fatima Fertilizer, The City School, and Lake City Holdings.
  • Fauji Fertilizer Company, a conglomerate with links to the military.
  • Pakistani airline, Airblue.
Due Diligence Phase

Pakistan’s Privatisation Minister Muhammad Ali stated that the pre-qualified parties will now advance to the buy-side due diligence phase.

This evaluation period is projected to span two to two-and-a-half months, with the final bidding and negotiation stages expected in the fourth quarter of 2025.

Roosevelt Hotel Transaction

The ministry also revealed that the Cabinet Committee on Privatisation has sanctioned the transaction framework for the Roosevelt Hotel in New York, considering options for both an outright sale and a long-term leasing arrangement.

Pakistan anticipates an initial payment exceeding $100 million from the Roosevelt Hotel deal this year.