Pakistan’s National Airline Sold in Landmark Privatization Deal
According to the Economic Desk of Webangah News Agency, Pakistan’s national carrier has been sold in one of the largest transactions in the country’s history, signaling a decisive change in aviation policy following years of financial struggles and government support.
The privatization ceremony in Islamabad saw three pre-qualified bidders submit sealed offers during a live broadcast to ensure transparency. The participants included a consortium led by Arif Habib, Lucky Cement, and private airline Airblue.
Initial bids placed Arif Habib in the lead with 115 billion rupees, followed by Lucky Cement at 105.5 billion rupees and Airblue at 26.5 billion rupees. After the bids were revealed, the government announced a reference price of 100 billion rupees, allowing the top two bidders to proceed to the public auction stage.
In the final round, Arif Habib and Lucky Cement gradually increased their offers. The competition concluded when Arif Habib submitted an unchallenged bid of 135 billion rupees, securing control of the airline.
The government initially offered 75% of the airline’s shares. Under the agreement terms, the winning bidder will have 90 days to acquire the remaining 25% stake.
Of the proceeds from the initial share sale, 92.5% will be reinvested directly into the airline to support operational improvements and growth, while the remaining 7.5% will be transferred to the federal government.
The new investor is also required to make 80 billion rupees in new investments over the next five years, a condition designed to stabilize the airline and modernize its operations.
Prior to privatization, the government assumed responsibility for the airline’s debts totaling 654 billion rupees, a move intended to make the carrier more financially attractive to potential investors.
