At least two major new parties have entered the race to acquire a majority stake in Pakistan International Airlines (PIA), as the government moves forward with efforts to privatise the loss-making national carrier, as reported by Reuters.
Expressions of interest (EOIs) for up to a 100% stake in PIA are due by Thursday, and industry insiders expect additional bidders to surface before the deadline. The sale process, which stalled last year due to PIA’s weak financial condition and burdensome purchase conditions, has been revived amid signs of a financial and operational turnaround.
According to sources cited by Reuters, the Yunus Brothers Group — owners of Lucky Cement and several energy firms — is preparing to bid for the airline. Another serious contender is a consortium led by Arif Habib Limited, which reportedly includes Fatima Fertilizer, Lake City, and The City School as partners.
The Ministry of Privatisation declined to comment on the developments.
The sale offer has been made more attractive through tax incentives and restructuring measures intended to reduce liabilities and isolate non-core assets. These changes, according to sources, have improved investor confidence and revived interest in the transaction.
Previously, the government received expressions of interest from the Fauji Foundation-backed Fauji Fertilizer Company (FFC), which confirmed its intent through a notice to the Pakistan Stock Exchange. FFC is partially owned by the military and has a strong financial profile due to its position in Pakistan’s profitable fertiliser sector.
Separately, a group of PIA employees has also announced its intention to participate in the privatisation bid. Hidayatullah Khan, president of the airline’s Senior Staff Association, said, “The employees will use their provident fund and pension, in addition to finding an investor to place a bid. We’re doing this to save jobs and turn around the company.”
The government’s efforts to privatise PIA are part of a broader plan to reduce the fiscal burden posed by state-owned enterprises. PIA has long been a source of recurring losses and debt accumulation. The latest restructuring and divestment plan aims to transfer the airline’s core operations to a new holding company, clearing a path for private sector ownership and management.
So far, the process appears to be gaining traction, with both institutional and strategic investors now seriously considering a stake in what was once considered an unviable asset. With the EOI deadline just hours away, attention will turn to which bidders formally enter the next stage of the transaction and how the government proceeds with valuation and selection.
