The board of Lucky Cement Limited has approved the company’s participation, as part of a consortium, in the ongoing privatisation process of Pakistan International Airlines Corporation Limited (PIACL), paving the way for the submission of a financial bid later this month.
In a notice to the Pakistan Stock Exchange (PSX) on Friday, Lucky Cement said the decision followed the satisfactory completion of detailed due diligence by the consortium. The board has authorised the company, subject to finalisation of transaction documents, to submit the financial bid, pay the required earnest money, and complete other formalities under the bidding framework issued by the Privatisation Commission. In a separate notice, Kohat Cement also confirms its participation in the Lucky Cement consortium.
The consortium includes Lucky Cement Limited, Hub Power Holdings Limited, Kohat Cement Company Limited, and Metro Ventures (Private) Limited.
The privatisation of PIACL is being carried out through a competitive bidding process, with financial bids scheduled to be opened on December 23, 2025. Prime Minister Shehbaz Sharif has earlier stated that the bidding process would be conducted transparently and broadcast live on national television.
Lucky Cement clarified that participation remains subject to the consortium emerging as the successful bidder, fulfilment of conditions set out in the transaction documents, and receipt of approvals from relevant regulatory authorities.
The Privatisation Commission last month prequalified four parties for the transaction: the Lucky Cement-led consortium, an Arif Habib Corporation-led consortium, Fauji Fertilizer Company Limited, and Air Blue Limited.
Pakistan has been seeking to privatise a 51% to 100% stake in PIA as part of broader reforms of state-owned enterprises under the ongoing $7 billion International Monetary Fund programme. The airline has long been a drain on public finances due to recurring losses, mounting debt, and operational inefficiencies.
As reported earlier by Profit, the government’s first attempt to privatise PIA failed last year after attracting only a single bid, which fell well short of the official valuation. The Blue World City-led consortium offered Rs10 billion for a 60% stake, far below the Privatisation Commission’s minimum expectation of Rs85.03 billion, leading to the collapse of the process.
Under the current privatisation framework, buyers will not receive sovereign guarantees or blanket protection against legacy liabilities, a factor that initially dampened investor interest but has since been addressed through asset carve-outs, balance sheet clean-up measures, and revised transaction structures.
The renewed bidding round reflects the government’s effort to make the transaction more bankable while maintaining competitive tension among bidders. If successful, the sale would mark one of the most significant privatisation transactions in Pakistan in recent years and a key milestone in the government’s IMF-backed reform agenda.
Leave a Reply