Employees of Pakistan International Airlines (PIA) have submitted a joint offer to acquire the national flag carrier, adding to the growing list of potential bidders as the June 19 deadline approaches, The News reported, citing official sources in the Privatization Commission.
The bid was jointly filed by Hidayatullah Khan, President of the CBA-affiliated People’s Unity, and Aqeel Siddiqui, head of the PIA Senior Staff Association (SASA).
The employees argue that they should have the first right to purchase the airline, which the federal government aims to privatize after a failed attempt in the past.
Alongside the employees’ bid, Fauji Fertilizer Company Limited (FFC) also submitted an offer to acquire PIA on June 16. FFC, one of Pakistan’s leading fertilizer companies, confirmed its submission of an Expression of Interest (EoI) and prequalification documents to the Privatization Commission.
This development comes as the government pushes to sell 51–100% of its shares in PIA, as part of a broader strategy to stabilize public finances through its $7 billion IMF-backed reform program.
Last month, the government extended the deadline for submitting Expressions of Interest (EoI) from both domestic and international investors who are interested in acquiring a majority stake in PIA, ranging from 51% to 100%.
The new deadline for submissions is June 19, 2025, an extension from the original deadline of June 3, 2025. However, all other terms and conditions for the privatization process remain unchanged.
The advertisement issued by the government confirms that the deadline for submitting EoIs and Statements of Qualification for the “Divestment of Pakistan International Airlines Corporation Limited through privatization” has been extended to 16:00 hours on Thursday, June 19, 2025. The terms and conditions for the privatization process remain as initially outlined.
According to the public notice, each EoI must be accompanied by a non-refundable processing fee of $5,000 or Rs 1.4 million. In the case of consortia, only one member is required to pay the fee. Eligible bidders include legal entities such as companies, firms, and corporate bodies, either individually or as part of a consortium.
PIA is majority-owned by the government, which holds about 96% of the airline’s capital through PIA Holding Company Limited (PHCL).
A previous attempt to privatise PIA in 2024 failed after the government received just one offer from the Blue World City consortium. The bid—Rs10 billion for a 60% stake—fell far short of the Privatisation Commission’s benchmark valuation of Rs85.03 billion and was consequently rejected. The privatisation process was scrapped amid concerns over valuation gaps, transparency, and a lack of investor confidence.
Earlier, the government initiated a major corporate restructuring effort to make the airline a more viable investment. On May 3, 2024, the Securities and Exchange Commission of Pakistan (SECP) approved a scheme of arrangement (SOA), which led to the division of the airline into two separate entities: PIA and PIA Holding Company Limited (PIA Holdco).
Under the SOA, the core aviation operations—including passenger transport, cargo, engineering, flight training, ground handling, and catering—remained with PIA.
Non-core assets and legacy liabilities such as old debt and non-operational real estate were moved to PIA Holdco, now listed on the stock exchange. PIA subsequently became a wholly owned subsidiary of PIA Holdco.
According to a recent report by Profit, the restructuring of PIA is already showing signs of recovery. For the year ended December 2024, the airline posted an operating profit of approximately Rs9.4 billion and a net profit of Rs26.2 billion, with earnings per share rising to Rs5.01. This marks a sharp turnaround from 2023, when the company reported a net loss of Rs104 billion—equivalent to a loss of Rs20 per share.
The last time PIA reported an annual profit was in 2004, when it posted after-tax earnings of Rs2.3 billion. In the years that followed, the airline accumulated over Rs600 billion in losses between 2005 and 2024, reflecting a prolonged period of financial decline.
Operationally, the airline has regained some stability. Over the past financial year, it carried nearly 4 million passengers across 30 destinations, operating an average of 268 flights per week. It continues to function as a full-service carrier, supported by its auxiliary divisions such as engineering, catering, cargo, ground handling, and training.
The Privatisation Commission Board has also approved revised pre-qualification criteria to filter out speculative investors and ensure only technically competent and financially stable parties move forward in the process.
The government aims to finalise the transaction within 2025, fulfilling its fiscal reform agenda, offloading a historically loss-making public entity, and concluding a privatisation process that has lingered for nearly two decades.
