Four groups pre-qualify to take part in PIA bidding process

F.P. Report

ISLAMABAD: The government announced on Tuesday that it has approved four groups — including major business conglomerates and a military-backed firm — to move forward in the bidding process for a stake in the financially troubled Pakistan International Airlines (PIA).

The move is part of a broader push to privatise state-owned enterprises under a $7 billion programme with the International Monetary Fund (IMF), aimed at reducing fiscal losses and improving economic efficiency. The government is offering a 51% to 100% stake in PIA, which would mark the country’s first major privatization in nearly 20 years.

One of the approved bidders is a consortium of prominent industrial firms: Lucky Cement, Hub Power Holdings, Kohat Cement, and Metro Ventures.

Another group is led by investment firm Arif Habib Corporation and includes Fatima Fertiliser, private education network The City School, and real estate developer Lake City Holdings.

Also approved are Fauji Fertiliser Company — a conglomerate with military backing — and private airline Airblue.

“The pre-qualified parties will now proceed to the buy-side due diligence phase,” said Privatisation Minister Muhammad Ali in a statement issued by his ministry.

The due diligence process is expected to take two to two-and-a-half months. Final bidding and negotiations are scheduled for the fourth quarter of 2025, Ali previously told Reuters.

In a related development, the Cabinet Committee on Privatisation has approved the transaction structure for the Roosevelt Hotel in New York, which includes options for either a full sale or a long-term lease.

According to the minister, Pakistan anticipates receiving over $100 million from the Roosevelt transaction within this year.