Pakistan to hold bidding again to sell loss-making PIA on Dec 23; Asim Munir-controlled firm among bidders

Pakistan will hold a fresh bidding to sell its debt-ridden national airline, Pakistan International Airlines (PIA), on December 23, after the government last year made a determined bid to sell it but could not get an attractive offer. Pakistan is trying to sell loss-making PIA as envisaged under a USD 7 billion International Monetary Fund (IMF) programme. The Shahbaz Sharif government tried to sell the airline last year but received just one offer of PKR 10 billion from a single bidder for a 60 per cent stake, far below the reserve price of PKR 85 billion. The Privatisation Commission restarted the process in April 2025 and sought expressions of interest for a 51 to 100 per cent stake from local investors and abroad.

This time, the Sharif government is offering full divestment and has scrapped the sales tax on leased aircraft, besides providing limited protection from legal and tax claims. Around 80% of the airline’s debt has been transferred to the state.

PM Shehbaz Sharif met corporate groups and company representatives involved in the plan to privatise the national airline, according to a press release shared on X by state broadcaster PTV News.

“PIA’s bidding will take place on December 23, which will be broadcast live on all media,” it quoted Sharif as saying.

“We are ensuring transparency and merit in the privatisation process of PIA,” Sharif said.

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Asim Munir-controlled ‘firm’ among four pre-qualified bidders

As per reports, four Pakistani firms have been cleared to take part in the move to privatise the national flag carrier. Fauji Fertiliser, Habib Rafique, Younus Brothers and Airblue have expressed interest in bidding for a majority share in the national airline, the reports said.

Fauji Fertiliser comes under the Fauji Foundation, which has grown into one of Pakistan’s biggest business groups. Pakistan’s army chief Asim Munir appoints the Quartermaster General (QMG), who sits on the Central Board of Directors of the Fauji Foundation, says an India Today report.

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Munir holds indirect influence over the Fauji Foundation through the military’s institutional control.

PIA’s long financial backlog caused by overstaffing and poor management created operational problems, leading to losses and the decision for its privatisation.

Finishing the PIA bidding process by the end of the year is crucial for Pakistan, as it is required for future payments. Notably, the IMF’s Executive Board is set to meet on December 8 to release the next $1.2 billion package.

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