ISLAMABAD: The Arif Habib Consortium has successfully acquired Pakistan International Airlines (PIA), the national flag carrier, for 135 billion rupees.
In the third phase of the privatization bidding process, the Arif Habib Consortium submitted a bid of 135 billion rupees and secured 75% of PIA’s shares.
Privatization Commission Advisor Muhammad Ali stated that the privatization of the national airline is part of the government’s reform agenda.
The objective is not merely to sell the airline but to revitalize it and put it back on a stable footing. This privatization will attract investment to the country.
According to the Privatization Commission Advisor, the government aims to restore PIA to its former glory.
The bidding for 75% shares took place today, with 92.5% of the proceeds allocated for improving the airline.
He further added that two-thirds of the payment can be made upfront, with the remaining one-third paid later.
Bidders have also been permitted to include up to two additional parties in their consortium after the bid.
In the first bidding phase, the Lucky Consortium offered 101.5 billion rupees, while Airblue bid 26.5 billion rupees. The Arif Habib Consortium submitted the highest bid of 115 billion rupees.
In the second phase, the Lucky Consortium raised its offer to 120.25 billion rupees, while the Arif Habib Consortium bid 121 billion rupees.
The process escalated into an open auction, culminating in the Arif Habib Consortium’s winning bid of 135 billion rupees.
Arif Habib has said that the successful bidding a victory for Pakistan. He said that PIA has seen good times in the past.
Our move will enhance investment in Pakistan. He added that new employees will be hired by our company.
We want to provide the workers of PIA with a feeling of financial safety.
Arif Habib said that initially 38 planes will be bought, however, the number will be raised to 65 later on.
