ISLAMABAD: The Government of Pakistan has shortlisted four potential investors to take over Pakistan International Airlines (PIA), marking a significant step forward in its drive to privatize the struggling national carrier.
The Ministry of Privatization announced on July 9, 2025, that two consortiums and two standalone entities had cleared the prequalification stage. The decision was endorsed during a meeting chaired by Muhammad Ali, Adviser to the Prime Minister on Privatization.
The shortlisted parties include:
1: Airblue (a Pakistani airline)
2: Fauji Foundation (through Fauji Fertilizer)
3: Consortium 1: Lucky Cement, Hub Power, Kohat Cement, and Metro Ventures
4: Consortium 2: Arif Habib Group, Fatima Fertilizer, City Schools, and Lake City Holdings
The selection followed rigorous evaluation of Statements of Qualification (SOQs) submitted by five interested groups.
“These prequalified parties will now enter the buy-side due diligence phase—a critical next step in the transparent and competitive privatization of PIA,” the ministry stated.
The government plans to divest at least 51% of its stake in PIA, and has indicated readiness to fully exit ownership subject to final negotiations.
PIA’s troubles came under international spotlight in 2020 when the UK and the European Union banned flights of Pakistan-based airlines over safety concerns, following revelations of fraudulent pilot licenses. While the EASA ban was lifted in late 2024, the process of restoring confidence in PIA remains ongoing.
