ISLAMABAD: The Pakistani government said on Tuesday it had approved four parties, including business groups and a military-backed firm, to potentially bid for a stake in debt-ridden Pakistan International Airlines (PIA).
Pakistan has been seeking to sell a 51-100% stake in the struggling national airline to raise funds and reform cash-draining, state-owned enterprises as envisaged under a $7 billion International Monetary Fund programme.
It would be the country’s first major privatisation in nearly two decades.
Among the bidding groups, one is a consortium of major industrial firms Lucky Cement, Hub Power Holdings, Kohat Cement and Metro Ventures.
Another is led by investment firm Arif Habib Corp, and includes fertiliser producer Fatima Fertilizer, private education operator The City School, and real estate firm Lake City Holdings.
Additionally, Fauji Fertilizer Company, a military-backed conglomerate, and Pakistani airline Airblue, have been approved to bid for PIA.
Update on Privatisation:
Major Progress in Privatisation Agenda: PC Board Prequalifies 4 Investors for PIA; CCOP Approves Roosevelt Hotel Transaction Structure
In a significant advancement of the Government’s privatisation agenda, two major decisions were taken today by the…
— Khurram Schehzad (@kschehzad) July 8, 2025
“The pre-qualified parties will now proceed to the buy-side due diligence phase,” Pakistan’s Privatisation Minister Muhammad Ali said in a statement.
The review process is set to last two to two-and-a-half months, with final bidding and negotiations anticipated in the fourth quarter of 2025, Ali previously told Reuters.
The country’s privatisation ministry also said that the Cabinet Committee on Privatisation approved the transaction structure for the Roosevelt Hotel located in New York, including options for both outright sale and long-term lease.
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The financial advisor had evaluated three options for the hotel transaction: outright sale, joint venture with multiple options, and long-term lease. Of them, the committee approved the joint venture model with multiple options has been approved. This option is aimed at maximizing long-term value for the country, while ensuring flexibility, multiple exit opportunities, and minimizing future fiscal exposure.
From the Roosevelt Hotel, Pakistan is expecting over $100 million as a first payment during this year, Ali previously told Reuters.