In a significant development for Pakistan's economic reform agenda, the federal government has announced that four major bidders have pre-qualified for the second attempt to privatize Pakistan International Airlines (PIA). The revelation came during a meeting of the Standing Committee on Privatisation held in Islamabad under the chairmanship of Muhammad Farooq Sattar.
PIA Privatization Gains Momentum
The Privatization Commission has approved the transaction structure for selling between 51% to 100% of PIA shares with full management control. The four pre-qualified bidders include Lucky Cement Consortium, Arif Habib Corporation Consortium, Fauji Fertilizer Company Limited, and Air Blue Limited. Other interested parties failed to meet the necessary requirements for participation.
These successful bidders have now gained access to the Virtual Data Room, allowing them to conduct thorough due diligence. They are also permitted to perform site visits and participate in pre-bid conferences as the process moves forward. Negotiations are currently underway to finalize commercial terms, indicating significant progress in the long-delayed privatization initiative.
The committee has directed authorities to accelerate the bidding process and present a detailed timeline in the next meeting. Special emphasis was placed on safeguarding PIA employees' interests post-privatization, including job retention based on performance and merit, along with fair processing of pensions, gratuity, and other benefits.
Power Sector and Other Privatization Updates
The committee issued several directives regarding the power sector, particularly concerning the installation of 1.5 million AMI meters across the country. Ministry of Power Division officials were instructed to provide a detailed area-wise report and arrange a formal briefing for Karachi's elected representatives to explain why the city was excluded from the current phase.
Additionally, the committee is assessing whether privatization could benefit consistently underperforming DISCOs. The Additional Secretary Power and relevant DISCO officials were directed to share their contact numbers with committee members to ensure direct communication and timely issue resolution.
In parallel developments, the Asian Development Bank has approved an additional $48 million loan for the Balochistan Water Resources Development Sector Project, signaling continued international support for Pakistan's development initiatives.
Other State Assets on Privatization Track
The government has approved Joint Venture as the preferred mode for the Roosevelt Hotel privatization, with multiple exit options. This decision was formally endorsed by the Cabinet Committee on Privatization in July 2025 based on recommendations from the PC Board.
The process encountered a setback when the former Financial Advisor, Jones Lang LaSalle Americas, resigned due to potential conflict of interest. Seven companies have now submitted technical and financial proposals for the Financial Advisor position, which are under review by the Evaluation Committee.
Regarding the energy sector, the Additional Secretary Power Division informed the committee that the government has begun phased privatization of public sector GENCOs under the 2024-29 program. Only operational plants will be offered, with Guddu (747 MW) and Nandipur (525 MW) identified for privatization after completing pre-conditions.
The meeting was attended by several MNAs including Dr Muhammad Farooq Sattar, Anwar Ul Haq Chaudhary, Abdul Qadir Khan, Ms Saba Sadiq, Ms Samar Haroon Bilour, Nazir Ahmed Bughio, Ms Natasha Doultana, Arshad Abdullah Vohra, and Sanjay Perwani, alongside officials from the Ministry of Privatization, PIA, and Power Division.
