ISLAMABAD: The Board of the Privatisation Commission (PC Board) on Wednesday recommended the bid offer for Pakistan International Airlines Company Limited (PIACL) submitted by the Arif Habib Group–led consortium for consideration and approval by the Cabinet Committee on Privatisation. The PC Board met here with Muhammad Ali, Advisor to the Prime Minister on Privatisation, in the chair. Earlier, in a press conference, Advisor Muhammad Ali said in addition to Rs10 billion in cash (a 7.5 percent share) the state will retain Rs45 billion in equity value (a 25 percent share) in Pakistan International Airlines Company Limited (PIACL). He called the claims that the government would only receive Rs 10 billion from the deal “misleading”. Arif Habib consortium buys 75% stake of PIA for Rs135 billion In a joint press conference with Minister for Information and Broadcast Attaullah Tarar, he said the government would receive a total of Rs55 billion from the bidding proceeds, while Rs125 billion would be reinvested in PIA. Defending the privatisation of PIA, he said the entity’s performance deteriorated significantly after 2009 as the national carrier incurred losses of Rs500 billion over the past decade. He said that PIA once operated a fleet of around 50 aircraft, but currently only 17 to 19 aircraft are operational, while 12 aircraft are on lease. The advisor said that PIA facilitates travel for around four million passengers annually, describing its landing and route rights as its most valuable assets. PIA was once a strong and reputable airline; he expressed confidence that privatisation would gradually help restore its lost stature and operational strength. Arif Habib consortium emerged as the top bidder in an auction for a 75 per cent stake in PIA on Tuesday, by offering Rs135 billion, surpassing a government reserve price of Rs100 billion. The process now moves to final approvals by the Privatisation Commission board and the cabinet, with contract signing likely within two weeks and financial close after 90 days to meet regulatory and legal conditions. The Advisor on Privatization clarified that properties of PIA are not part of this deal. He said the government will get an economic value of fifty-five billion rupees from this deal. The Advisor said the privatization of PIA was completed due to the tireless efforts of all stakeholders over the last six months. He said Prime Minister Shehbaz Sharif, Deputy Prime Minister Ishaq Dar, and the COAS and Chief of Defence Forces Field Marshal Syed Asim Munir provided the guidance in this regard. The Minister for Information and Broadcasting; however, reaffirmed the government’s commitment to accelerate privatisation of loss-making state-owned enterprises. Copyright Business Recorder, 2025