Islamabad The Privatisation Commission Board (PC Board) on Wednesday formally recommended the bid submitted by the Arif Habib Consortium for approval by the Cabinet Committee on Privatisation (CCoP), marking a major milestone in the long-awaited privatisation of Pakistan International Airlines (PIA).
The decision was taken during the Board’s 246th meeting, chaired by Muhammad Ali, Adviser to the Prime Minister on Privatisation and Chairman of the Privatisation Commission. The Board reviewed the bidding process and transaction details before endorsing the consortium’s offer for the national flag carrier.
Bid Exceeds Reference Price
According to officials, the Arif Habib Consortium submitted a bid of Rs. 135 billion for a 75 percent stake in PIA, significantly exceeding the reference price of Rs. 100 billion. Board members expressed satisfaction over the premium offered, describing it as a positive outcome for the government and a strong signal of renewed investor confidence in Pakistan’s privatisation programme.
The Board noted that the competitive valuation reflects improved market sentiment and the effectiveness of recent reforms undertaken to make PIA a more viable investment opportunity.
Acknowledgement of Stakeholders’ Role
The PC Board acknowledged the coordinated efforts of all stakeholders involved in the transaction, including the Financial Adviser, legal consultants, and the Privatisation Commission’s transaction team, for successfully steering the complex deal to its final approval stage.
Members highlighted that the process was conducted in line with transparency and regulatory standards, reinforcing the government’s commitment to fair and credible privatisation.
Leadership Praised
The Board also commended the leadership of Muhammad Ali, Adviser to the Prime Minister on Privatisation, for providing strategic direction and ensuring steady progress on one of the country’s most high-profile privatisation initiatives.
Officials said the completion of this stage represents a significant breakthrough after years of delays, legal challenges, and restructuring efforts surrounding PIA’s privatisation.
Next Steps
With the Board’s recommendation now forwarded, the final decision rests with the Cabinet Committee on Privatisation, which will review the bid and determine the next course of action. If approved, the transaction would pave the way for a major shift in PIA’s ownership and management, with expectations of improved operational efficiency, reduced fiscal burden on the government, and enhanced service quality.
The privatisation of PIA is being closely watched by local and international investors, as it is seen as a test case for Pakistan’s broader economic reform and state-owned enterprise restructuring agenda.
