Pakistan’s privatisation drive gained fresh momentum on Friday as the Privatisation Commission Board approved the inclusion of AKD Group Holdings (Pvt.) Ltd in the Arif Habib Corporation Limited-led consortium, one of four pre-qualified groups competing for a majority stake in Pakistan International Airlines Corporation Limited (PIACL).
The decision reflects the government’s renewed effort to offload loss-making state enterprises, including the debt-ridden national carrier, under the $7 billion International Monetary Fund reform programme. The privatisation process was restarted earlier this year with a new call for Expressions of Interest in April, followed by the shortlisting of bidders in June.
According to the Privatisation Commission, the inclusion of AKD Group Holdings is permissible under the terms set out in the Statement of Qualifications. The approval was granted during the Commission’s 242nd meeting, chaired by Muhammad Ali, Adviser to the Prime Minister on Privatisation. The same meeting also made key decisions on other ongoing initiatives, including the privatisation of the House Building Finance Company Limited (HBFCL) and the long-term management of Islamabad, Lahore, and Karachi airports.
Under the revised plan for PIA, the government aims to sell between 51 and 100 percent of its stake to raise funds and reduce losses from struggling state-owned enterprises. In June, Fauji Fertilizer, Air Blue, and three consortiums submitted their Statements of Qualification, confirming participation in the bidding process. These included consortiums led by Lucky Cement Limited and by Arif Habib Corporation Limited, the latter joined by Fatima Fertilizer Company Limited, City Schools (Private) Limited, and Lake City Holdings (Private) Limited—now further strengthened by the inclusion of AKD Group Holdings. Another group comprising Augment Securities & Investments, Serene Air, Bahria Foundation, Mega C&S Holding, and Equitas Capital LLC has also been pre-qualified.
The government had initially set June 3 as the deadline for Expressions of Interest submissions, later extending it to June 19 without altering any terms or conditions. Officials hope that with renewed investor confidence and diversified consortiums, the process will yield stronger valuations and bring in efficient private-sector management.
In addition to the PIA developments, the Privatisation Commission Board also approved a reference price for the sale of HBFCL, along with the draft Sale Purchase Agreement, for submission to the Cabinet Committee on Privatisation. The company is being privatised through a negotiated deal with the Pakistan Mortgage Refinance Company Limited, the sole pre-qualified bidder. The Cabinet Committee and the Federal Cabinet had already authorised this approach in July 2023, and the bid will be opened once the reference price is approved.
The board further recommended the inclusion of airport management for Islamabad, Lahore, and Karachi in the ongoing privatisation programme. These airports are to be offered on a long-term concession basis aimed at improving operational efficiency and service quality.
The government’s first attempt to privatise PIA last year faltered after receiving a single offer well below the asking price of over $300 million. With new consortiums and domestic investors now entering the process, officials are hopeful that this round will deliver a more competitive outcome and support Pakistan’s broader economic reform and divestment goals.
