ISLAMABAD: Pakistan has moved a step closer to offloading its loss-making national carrier, as all four shortlisted investor consortiums are set to begin buy-side due diligence next week with access to PIA’s Karachi headquarters for in-depth briefings, officials said.
This is a critical phase and a step in the competitive and transparent privatization process of the national carrier. It will provide potential bidders with firsthand insight into PIA’s operations. According to sources familiar with the matter, representatives of the four consortiums will receive comprehensive briefings at the PIA head-office, covering operational, financial, and strategic aspects of the airline. Topics will include PIA’s fleet size, domestic and international routes, employee structure, revenue streams, and operational challenges.
The PIA management has been directed to remain fully prepared to present official records and respond to queries from the visiting investors. The government intends to ensure a transparent and well-informed bidding process by granting access to the airline’s business plans and internal data during this due diligence phase.
On July 8, the Privatization Commission board has pre-qualified four groups including two consortia: one comprising Lucky Cement Limited, Hub Power Holdings, Kohat Cement Company, and Metro Ventures; the other made is Arif Habib Corporation, Fatima Fertilizer, City Schools, and Lake City Holdings. The remaining two prequalified bidders are Fauji Fertilizer Company and Air Blue (Pvt.) Limited.
These visits and briefings are seen as a crucial step before the submission of final bids, allowing investors to assess risks, liabilities, and growth potential. Officials believe that informed decision-making through access to real-time operational data will result in competitive and credible offers.
The privatization of the loss-making national carrier is part of the government’s broader economic reform agenda aimed at offloading underperforming state-owned enterprises and attracting private sector efficiency and investment. If completed successfully, it could mark a turning point for the aviation sector in Pakistan and revive PIA’s fortunes under a new management.