ISLAMABAD: Pakistan will broadcast live the auction of its loss-making national flag carrier tomorrow (Tuesday), confirmed the Privatisation Commission in a statement on Monday.
According to a statement issued by the Privatisation Commission, bidders will submit sealed bids by 10:30 am.
Authorities said the move aims to ensure transparency. Pakistan will privatise 75 percent of Pakistan International Airlines (PIA) while retaining its name and branding, according to the Prime Minister’s Office.
The decision marks Islamabad’s most aggressive effort in decades to reform the debt-ridden carrier. PIA has accumulated more than $2.5 billion in losses and is a major burden on the national budget.
In July, Pakistan prequalified four consortiums for the sale. Fauji Fertilizer Company later withdrew. Lucky Cement and Arif Habib Corporation lead two consortiums, while private airline Airblue is the third contender.
“The government plans a full divestment of the airline, starting with the auction of a 75 percent stake on Tuesday,” Privatisation Commission Chairman Muhammad Ali said. The remaining 25 percent will be offered later at a 12 percent premium.
Once considered one of Asia’s premier carriers, PIA has struggled with mismanagement, political interference, overstaffing, mounting debt, and operational issues. Flights to the EU, UK, and US were banned in 2020 after a pilot licensing scandal.
Privatising PIA is also a key requirement under Pakistan’s $7 billion IMF program agreed last year. This is Pakistan’s third attempt at PIA privatisation. A 2024 auction failed after a single bid of $35 million fell far below the government’s $300 million asking price.
The government targets $302 million in privatisation proceeds this year. Ali said restoring PIA operations remains a priority over maximizing short-term revenue. The plan includes expanding PIA’s fleet and route network.
Ali said the government had aimed to finalise the sale by October 2025, but delays in restructuring and valuation postponed the auction.
The PIA sale is seen as a key test of Pakistan’s broader economic reform agenda. Islamabad seeks to cut losses from state-owned enterprises and revive investor confidence.
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The government has launched a five-year privatisation plan covering 24 state entities between 2024 and 2029. The plan includes the Roosevelt Hotel in New York, three banks, power distribution companies, and the Postal Life Insurance Company.
