Business giants line up to take over PIA as sale deadline arrives 

ISLAMABAD: Several Pakistani business groups, including Airblue Ltd. and Gerry’s Group, are preparing bids to acquire a controlling stake in Pakistan International Airlines, as the government seeks to offload the loss-making national carrier. 

Airblue’s Managing Director Aslam Chaudhary and Gerry’s Group head Akram Wali Muhammad confirmed their participation in the bidding process for a stake ranging between 51 and 100 per cent in the airline, according to people familiar with the matter. 

Prominent industrialists Muhammad Ali Tabba and Arif Habib have also formed separate consortia to join the race. Habib said his consortium includes Fatima Fertilizer Ltd., Lake City and The City School. Meanwhile, Yunus Brothers Group, controlled by Tabba, is bidding through a separate alliance involving Mega Group, Kohat Cement Co. and Metro Group. 

The deadline to submit Expressions of Interest (EoIs) for the acquisition of Pakistan International Airlines Corporation Ltd. (PIACL) was extended earlier this month to June 19. The government had initially set a June 3 deadline but pushed it forward to allow more time for potential buyers. No changes were made to the terms of the sale. 

The government owns around 96 per cent of PIA through the PIA Holding Company. It is offering a majority stake in the company as part of a broader effort to restructure state-owned enterprises and meet conditions under a $7 billion International Monetary Fund programme. 

This is the second attempt in less than a year to privatise the airline. A previous effort stalled in 2024 after the only bid received, Rs10 billion from the Blue World City consortium for a 60 per cent stake, fell far short of the government’s minimum valuation of Rs85.03 billion. 

Fauji Fertilizer Company Ltd., one of the country’s largest fertiliser producers, also recently submitted an expression of interest, signalling renewed investor appetite for the flag carrier despite its long-running financial troubles. 

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