ISLAMABAD – The government is set to hold the final bidding for Pakistan International Airlines (PIA) by mid-December, the Privatisation Division secretary informed the National Assembly’s standing committee on Wednesday.
Briefing the panel chaired by MNA Farooq Sattar, the secretary said that four pre-qualified consortia are currently in the final stages of negotiations over commercial terms. Discussions are ongoing regarding the share purchase and shareholders’ agreements, with pre-bid qualification talks having continued for the past three days. Approval for PIA’s reserve price is expected soon from the federal cabinet.
Earlier this year, the Privatisation Commission Board pre-qualified four bidders: Fauji Fertiliser Company Ltd, Air Blue (Pvt) Ltd, a consortium of Lucky Cement, Hub Power Holdings, Kohat Cement, and Metro Ventures, and a consortium led by Arif Habib Corporation with Fatima Fertiliser, City Schools, and Lake City Holdings. In November, AKD Group Holdings (Pvt) Ltd was included in the Arif Habib-led consortium.
During the meeting, Farooq Sattar emphasized the need for strong job protection for PIA employees and transparency in the sale process. The committee recommended at least five years of job security for airline staff, along with safeguards for pensioners. Officials highlighted that PIA currently operates 18 aircraft and will require an additional 35–38 aircraft for sustainable operations, while future owners will be expected to retain experienced staff.
Additionally, the Additional Secretary of the Power Division revealed that the government is considering the transfer of DISCOs under long-term concession agreements, similar to the Turkish model, rather than full privatisation. These agreements would grant private entities management responsibilities for up to 25 years, enabling investments and infrastructure improvements.
In the first phase, the government aims to privatise Islamabad, Gujranwala, and Faisalabad electric supply companies, with the process expected to advance by March. The committee was also informed that all three-phase meters nationwide will be replaced with AMI meters by December 2026 to curb electricity theft, with 1.5 million AMI meters already installed in the Iesco region, reducing power losses by 2%.
Addressing the decades-long delay in the privatisation of Pakistan Engineering Company (Peco), Farooq Sattar was told that the company has been placed under the Special Investment Facilitation Council (SIFC). The committee requested a formal progress report from the SIFC. Officials also confirmed that all pending dues of Utility Stores employees have been cleared.
