Islamabad, December 23, 2025 — Prime Minister Muhammad Shehbaz Sharif on Tuesday congratulated the nation on the successful and transparent bidding process for the privatization of 75% shares of Pakistan International Airlines (PIA), calling it a major milestone in the government’s economic reform agenda.
In a statement issued by the Prime Minister’s Office, Shehbaz Sharif said that upon assuming office, he had pledged to initiate concrete steps for the privatization of loss-making state-owned enterprises, and the successful divestment of PIA marked significant progress toward fulfilling that promise. He emphasized that, by the grace of Allah, the bidding process was conducted in an extremely transparent manner, which has helped restore investor confidence in Pakistan’s economy.
“The privatization of PIA and other state-owned enterprises will play an important role in further stabilizing the national economy,” the prime minister said, adding that cooperation among all state institutions was contributing to economic stability.
He also lauded the efforts of Deputy Prime Minister and Foreign Minister Ishaq Dar, Chief of Army Staff and Chief of Defence Forces Field Marshal Syed Asim Munir, Defence Minister Khawaja Asif, Adviser on Privatization Muhammad Ali, the Privatization Commission, and other stakeholders for ensuring a credible and efficient process. The prime minister reiterated the government’s resolve to promote national development, prosperity, and public welfare through partnerships with the private sector.
Earlier on Tuesday, the Pakistan government concluded the sale of a 75% managing stake in PIA for Rs135 billion, ending years of stalled attempts to privatize the debt-ridden national carrier. The Arif Habib consortium emerged as the highest bidder, securing control of the airline. The consortium includes Arif Habib Corporation Limited, Fatima Fertilizer Company Limited, City Schools (Private) Limited, and Lake City Holdings (Private) Limited.
The privatization process entered its second phase after two bidders crossed the government’s minimum expected price of Rs100 billion in the first round. In the initial bidding, the Lucky consortium offered Rs101.5 billion, Air Blue consortium bid Rs26.5 billion, and the Arif Habib consortium submitted a bid of Rs115 billion. This triggered an open auction, during which the Arif Habib consortium raised its offer to Rs135 billion, narrowly beating the Lucky consortium’s final bid of Rs134 billion.
Out of the total Rs135 billion, the government will receive Rs10.12 billion in cash, while the remaining amount will be invested directly into PIA. According to the Privatization Commission, 92.5% of the proceeds from the 75% stake will go into the company, with only 7.5% allocated to the government. The government will retain the remaining 25% stake, with an option for the successful bidder to acquire it at a later stage.
The commission stated that the bidding process was built on transparency, efficiency, and accountability, with bids opened in front of the media. Business leaders also welcomed the development, noting that PIA had accumulated losses of nearly Rs800 billion over the past two decades.
The successful sale follows a failed privatization attempt last year and aligns with Pakistan’s commitments under the $7 billion IMF programme to reform cash-draining state-owned enterprises and strengthen the economy.