Pakistan Sells 75% of PIA to Arif Habib for 135 Billion Rupees

A consortium led by Pakistani investment firm Arif Habib secured a 75 percent stake in state-run Pakistan International Airlines on Tuesday through a televised auction in Islamabad, paying 135 billion rupees ($482 million) in a competitive process that capped months of government efforts to offload the chronically unprofitable carrier.

The bidding, broadcast live on local television and government social media channels, began with sealed envelopes from three prequalified participants: the Arif Habib group, Lucky Cement and private airline Airblue. Initial offers placed Arif Habib at the top with 115 billion rupees, followed by Lucky Cement at around 105 billion rupees and Airblue at 26.5 billion rupees, surpassing the government's reference price of 100 billion rupees. Airblue withdrew after the first round, leaving Arif Habib and Lucky Cement to enter an open auction with 250 million rupee increments starting from 115 billion rupees. The two rivals traded bids until Arif Habib raised its offer to 135 billion rupees, prompting Lucky Cement to concede. A representative from Lucky Cement congratulated the winners on the spot.

The successful bidder has 90 days to acquire the...