The first round attracted bids from three pre-qualified groups: Lucky Cement, Airblue, and the Arif Habib consortium. Their offers surprised many and instantly raised interest in the sale of the national airline.
Lucky Cement submitted a bid of Rs101.5bn, while Airblue offered Rs26.5bn. The highest bid came from the Arif Habib consortium at Rs115bn, placing it at the top after the opening round.
After the reference price, recommended by the Privatisation Ministry and approved by the cabinet committee, was announced, officials announced a 30-minute break. This pause was given to allow the two leading bidders to consult before moving forward.
For the second round, the base price has been fixed at Rs115bn, with a minimum increment of Rs250bn. This means any new offer must cross this level to stay in the race.
Read more: Three bids submitted for PIA privatisation in Pakistan’s high-profile sale
At the start of the ceremony, Adviser to the prime minister on privatisation Muhammad Ali addressed the gathering. He said the privatisation of PIA would open “paths for investment in the country”.
“I would also like to thank all bidders who are present today, and those who were part of the bidding process but did not reach the final round. We wouldn‘t have been here without them, and this process wouldn’t have been completed,” he added.
In a public ceremony in Islamabad, representatives of bidding groups placed their sealed offers into a transparent box. The event was broadcast live on state television to highlight transparency.
After bids are received, the reference price for PIACL will be approved by the Privatisation Commission Board and the Cabinet Committee on Privatisation. The envelopes will then be opened in front of bidders, and results announced as per agreed terms.
Muhammad Ali will hold a press conference after the bidding ends. The entire process is being aired live on TV channels and government social media platforms.
Earlier, Ali told media, “God willing, we will get a good bid, there will be good investment and we will succeed.“
This is Pakistan’s second attempt to sell PIA. A similar auction last year failed after a single bid fell far below the government’s benchmark.
Prime Minister Shehbaz Sharif has praised officials and the Privatisation Commission, calling the process “transparent“ and the “largest transaction” in Pakistan’s history.
“Today, as the bidding starts [..] the bids will come in sealed envelopes, there will be transparent boxes, there will be a live telecast. When the price is determined, the envelopes will be opened. They will compete, and whoever has the highest bid will [succeed],“ he said.
