AKD group joins hands with Arif Habib as potential buyers of PIA

Pakistan has approved the request of a business conglomerate to join a list of bidders eyeing the purchase of the struggling national airline, an official statement said on Friday.

The Privatization Commission Board has included AKD Group Holdings (Pvt.) Ltd in the consortium led by Arif Habib Corporation Limited (AHCL) for the privatization of Pakistan International Airlines Corporation Limited.

The addition has been made months after the commission finalized four bidders for what could be the country’s first major privatization in nearly 20 years.

The decision to add AKD Holdings, a Karachi-based business group, was made during the 242nd meeting of the Privatisation Commission Board, chaired by Muhammad Ali, Adviser to the Prime Minister on Privatisation.

The inclusion was approved under the Statement of Qualifications which permits such additions, the official statement added.

Officials said the move will enhance the consortium's financial and operational capacity ahead of the next phase of the PIA privatization process.

The four shortlisted bidders for PIA are:

• AHCL consortium including Fatima Fertilizer Company Ltd, City Schools (Pvt) Ltd, and real estate giant Lake City Holdings (Pvt) Ltd.
• A consortium of Lucky Cement Ltd, Hub Power Holdings Ltd, Kohat Cement Company Ltd, and Metro Ventures (Pvt) Ltd
• Fauji Fertilizer Company Ltd
• Air Blue (Pvt) Ltd

The four bidders will participate in the competitive process for PIA’s sale, which the government hopes to conclude in 2026 as part of its broader state-owned enterprise reform agenda under the IMF loan program.

Other privatization transactions

The board also recommended a reference price for the sale of House Building Finance Company Limited (HBFCL), along with the terms of the Sale Purchase Agreement, for submission to the Cabinet Committee on Privatisation (CCoP).

The HBFCL transaction involves a negotiated sale to Pakistan Mortgage Refinance Company Limited (PMRCL), which was pre-qualified as the sole bidder. PMRCL’s bid will be opened once the reference price receives approval from the CCoP and ratification from the Cabinet.

In another key development, the board recommended to the CCoP the privatization of the operations of Islamabad, Lahore, and Karachi’s airports.

Under the proposal, management rights for the three airports will be offered on a long-term concession basis, enabling private-sector operators to manage and operate the airports under government oversight.

The Pakistan government has been trying to reduce its fiscal burden by giving away loss-making public enterprises to the financial sector.

Privatization is a key component of the reforms plan agreed with the IMF for the $7 billion bailout program.