On December 23 the government of Pakistan sold its national carrier, Pakistan International Airlines Corporation Ltd (PIA), at a valuation of $482 million at auction.
The bid for Pakistan International Airlines
The bid was a competitive televised auction, with the sale marking the first major privatisation in Pakistan in nearly two decades. The auction was overseen by the Privatisation Commission Board. The two-round bidding process concluded as Arif Habib Corp emerged as the highest bidder after open competition among pre-qualified local bidders. The government’s reference price was set at $360 million for the transaction.
Three sealed bids were submitted during the initial stage before the process moved to an open auction. The highest bid in the first round reached approximately $415 million, prompting officials to raise the reserve price for the second round $450 million.
PIA has been mostly dependent on government assistance to survive for a number of years due to growing debt, operational inefficiencies, and political meddling.
The new ownership is anticipated to enhance management and re-establish the airline’s financial stability, according to officials, who added that the sale is contingent upon regulatory clearances and the conclusion of legal proceedings.
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