ISLAMABAD: The Arif Habib Corporation Limited–led consortium has acquired a majority stake in Pakistan International Airlines after submitting the highest bid of Rs135 billion in the privatisation process of the national flag carrier.

The consortium raised its offer from Rs115 billion to Rs135 billion in the second round of open bidding after the Lucky Cement Limited–led consortium increased its bid from Rs101.5 billion to Rs134 billion. As two bids crossed the government’s reference price of Rs100 billion, the winner was determined through an open auction.

Finance Minister Muhammad Aurangzeb, speaking at the ceremony, said that regardless of who won the bidding, the real success belonged to Pakistan. He noted that all participating bidders were Pakistani companies, calling it a major and encouraging sign for the country’s investment climate.

He said the presence of leading domestic business groups competing for the national airline reflected growing investor confidence and Pakistan’s commitment to transparent economic reforms. The finance minister also congratulated Adviser to the Prime Minister on Privatisation Muhammad Ali and his team for conducting what he described as a professional and credible process.

Earlier, Muhammad Ali said the privatisation of PIA was part of the government’s broader reform agenda, stressing that the objective was not merely to sell the airline but to make it financially sustainable. He said the government decided to sell a 75% stake in PIA, adding that 92.5% of the bid amount would be invested back into the airline, while 7.5% would go to the government.

Under the agreed terms, the winning bidder will pay two-thirds of the amount within 90 days, with the remaining one-third payable within 12 months. The government has also assured 12 months of job security for PIA employees, while pension and post-retirement liabilities will be handled by the holding company.

The Arif Habib–led consortium includes Fatima Fertiliser Company Limited, City Schools and Lake City Holdings Limited. Other bidders included a consortium led by Lucky Cement Limited and private airline Air Blue.

Officials said the privatisation marks a key step in reviving PIA, which has recently posted its first pre-tax profit in two decades and regained access to key European and UK routes after the lifting of a five-year ban. The sale is part of Pakistan’s wider privatisation drive under its IMF-backed economic reform programme aimed at reducing fiscal losses and restoring investor confidence.