Diverse Pakistani investment firm Arif Habib Group has emerged as the successful bidder for flag-carrier Pakistan International Airlines.
Its bid of Rs135 billion ($480 million) for a 75% share of the carrier follows a drawn-out privatisation programme.
Pakistan’s ministry of privatisation confirms Arif Habib and its partners – which were among four shortlisted bidders in July – are the “winning consortium” for PIA.
Three bidders participated in the final stages: Arif Habib, the budget carrier Airblue, and a consortium featuring the company Lucky Cement.
Pakistani prime minister Muhammad Shehbaz Sharif says the privatisation of PIA is a “very important milestone”.
The successful bid values the company at Rs180 billion.
“It was our firm commitment to the people of Pakistan that speedy and concrete steps would be taken to privatise loss-making state-owned enterprises that have been a burden on the economy,” says Sharif.
“The successful completion of the transparent and highly-competitive bidding process for the privatisation of PIA marks an important milestone in fulfilling that commitment.”
Arif Habib has interests in cement, fertilizer, steel mill, energy, finance and other sectors. Its consortium includes Fatima Fertilizer Company, Lake City Holdings, AKD Group Holding, and City Schools.
“I have always maintained that, regardless of which consortium emerged successful, Pakistan would be the ultimate winner and today’s outcome fully vindicates that belief,” adds Sharif. “The strong participation of our leading business groups and some of Pakistan’s most seasoned and respected investors is a powerful vote of confidence in our economy and its future.”
