Arif Habib Group-led consortium has secured the Pakistan International Airlines (PIA) privatisation bid with a sum of Rs135 billion, with Lucky Cement Group had increased its bid to Rs134 billion.

According to details, in the second phase, after the bids and the government reference price were revealed, open bidding resumed. During this stage, Lucky Cement offered Rs120.25 billion, to which the Arif Habib Group responded with a bid of Rs121 billion. Observing the current situation, Lucky Cement sought 30 more minutes to place a further bid.

The second phase of bidding for the privatisation of the national airline, Pakistan International Airlines (PIA), has formally begun, with the Arif Habib-led consortium submitting the highest bid of Rs115 billion.

According to details, the Lucky Cement-led consortium submitted a bid of Rs101.5 billion, while the Airblue Group submitted a bid of Rs26.5 billion. Officials said that following the opening of the bids, a reference price would be announced, on the basis of which the next stages of the privatisation process would be determined.

Addressing the occasion, Privatisation Adviser Muhammad Ali said that the privatisation of PIA formed a key part of the government’s agenda. He said that after the PIA bidding, new avenues for investment and privatisation would emerge. A decision was taken in April for the sale of 51 to 100 per cent shares, which was later revised to the sale of 75 per cent shares.

The privatisation adviser said a plan was in place to sell a further 25 per cent shares within 90 days. He said that 92.5 per cent of the funds would be spent on PIA itself, while the government would receive the remaining 7.5 per cent revenue. He added that the aim was to raise the number of aircraft from 18 to 100, and that payment for the 75 per cent stake would be received in stages.

Muhammad Ali said that two-thirds of the payment would be received at the outset. He added that after bidding, bidders could include two additional parties, and that another airline could also join a consortium for investment purposes.