Pakistan Makes History: PIA Sold for $482 Million!

In a historic move marking a new chapter in Pakistan’s aviation sector, the government has sold 75 per cent of its state-owned carrier, Pakistan International Airlines (PIA), to a private investor. This landmark transaction signals a major shift in the country’s civil aviation history.

The sale took place through a competitive auction on Tuesday, 23 December, where Arif Habib Investment, a prominent Pakistani investment firm, secured ownership of PIA for PKR 135 billion (approximately USD 482 million). The deal is widely regarded as the largest single transaction in Pakistan’s corporate history.

The government had initially set a reference price of PKR 100 billion for the 75 per cent stake. Three Pakistani companies participated in the auction, which was broadcast live on state-run media to ensure transparency.

At the auction’s commencement, Prime Minister Shehbaz Sharif addressed the nation, stating that the transaction would be “the largest in the country’s history” and emphasising the importance of maintaining full transparency throughout the process.

After two rounds of bidding, Arif Habib Investment emerged as the highest bidder, agreeing to pay PKR 135 billion for the 75 per cent stake. Under the terms of the deal, the group also has the option to purchase the remaining 25 per cent of PIA shares in the coming months.

The main competitor, a consortium led by Lucky Cement, offered PKR 134 billion, while private airline AirBlue submitted a bid of PKR 26.5 billion. This follows last year’s unsuccessful attempt to privatise the national carrier.

Founded in 1955, PIA was long considered a symbol of national pride and economic progress. Its reputation peaked in the 1960s, thanks in part to the iconic flight attendant uniforms designed by French designer Pierre Cardin and the airline’s extensive international network.

However, in recent years, PIA has suffered recurring financial losses and significant safety concerns. In June 2020, one of its Airbus A320 jets crashed in Karachi, leading to a temporary ban of PIA flights in Europe and the UK. Services were reinstated in 2025, though operations in the United States remain suspended. Currently, only 18 of the airline’s 34 aircraft are operational.

Auction Summary Table

With this sale, Pakistan embarks on a new era of privatised aviation, aiming to modernise operations, improve safety standards, and restore PIA’s status on the international stage.