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ISLAMABAD:&nbsp;Pakistan concluded the sale of a controlling stake in its national carrier,&nbsp;Pakistan International Airlines (PIA),&nbsp;on Tuesday, finalizing a deal worth Rs135 billion ($485 million) following a televised auction in the capital. The Arif Habib Consortium submitted the highest offer for the 75% stake in the PIA, surpassing a bid from a group led by Lucky Cement Limited. The final price exceeded the government&#39;s reference price of Rs100 billion ($357 million) established earlier in the day. Finance Minister Muhammad Aurangzeb said the transaction would help integrate Pakistani institutions into the global economy. &ldquo;We need to stop the bleeding and losses, but more importantly, our institutions need to be part of the comity of nations, and we will take them there,&rdquo; Aurangzeb said at the ceremony. &ldquo;The fact that they have stepped up is a doubtless sign that anyone who is the successful bidder will take it not only to where we were, but where we need to be.&rdquo; The auction began with sealed offers from three pre-qualified groups: Arif Habib, Lucky Cement, and Airblue. In the first round, the Arif Habib group offered Rs115 billion ($410.7 million), while the Lucky Cement group offered Rs101.5 billion ($362.5 million). The Airblue consortium submitted a bid of Rs26.5 billion ($94.6 million)and was eliminated for falling below the minimum reference price. A second round of bidding followed between the two remaining groups, starting with a base price of Rs115 billion ($357 million)&nbsp;and a minimum increment of Rs250 million ($892,782). Lucky Cement raised its offer to Rs134 billion ($478.5 million) before the Arif Habib group submitted the final bid of Rs135 billion. Lucky Cement did not submit a further counteroffer. Privatization Minister Muhammad Ali said the government aimed for transparency by engaging multiple bidders. He stated that 92.5% of the sale proceeds will be reinvested into the airline to fund operations and fleet expansion. The remaining 7.5% will go to the government exchequer. The terms of the sale require the new owners to expand the airline&#39;s fleet from 18 operational aircraft to at least 30 within 3-4 years. The government retains a 25% stake in the carrier, which the winning consortium has the option to purchase within 90 days. The sale is part of an economic reform agenda linked to a $7 billion loan program from the International Monetary Fund, which mandates the privatization of loss-making state-owned enterprises.&nbsp;The government previously transferred approximately Rs600 billion ($2.14 billion) of the airline&rsquo;s debt to a holding company to facilitate the sale. This auction follows an unsuccessful attempt to sell the airline in November 2024, when a sole bidder offered Rs10 billion ($35.7 million) against a reference price of Rs85 billion ($303.5 million). The final bid requires formal approval from the Cabinet Committee on Privatization.

Economy

Arif Habib Consortium wins 75% stake in PIA with Rs135 billion ($482 million) bid, exceeding government reference price.

Articles tagged with "Arif Habib Consortium"

PIA privatization ends with $482 million winning bid