Tech Desk 
Dec 21, 2025
A Pakistan International Airlines (PIA) plane prepares to take off at Allama Iqbal International Airport in Lahore. — Reuters
Fauji Fertiliser Company Ltd, once considered a front-runner for a 75% stake in Pakistan International Airlines (PIA), has formally withdrawn from the privatisation process, officials said, even as sealed bids are scheduled for December 23, 2025.
A senior Privatisation Commission official told The News that Fauji Fertiliser chose not to submit the required earnest money by Saturday, the last day for deposits. Three other prequalified bidders completed the deposit and will now submit sealed bids.
By withdrawing, the option to join any possibly winning consortium remains open to Fauji Fertiliser, which was not possible if they had put in a bid.
PIA privatisation
Earlier, there were four prequalified firms: Fauji Fertiliser, Airblue (Pvt) Ltd, a group consisting of Lucky Cement, Hub Power Holdings, Kohat Cement, and Metro Ventures, and a group consisting of Arif Habib Corporation, Fatima Fertiliser, City Schools, and Lake City Holdings. AKD Group Holdings entered into a group consisting of Arif Habib Corporation on November 7th.
As per the privatisation of PIA, the winning party will receive 75% of PIA ownership and has the option of purchasing the remaining 25% stake within a span of 90 days.
The process starts with submitting a bid, and if it meets or exceeds the reserve price, it will be publicly opened; however, if the bid is less, the highest bidder will be given the first right of refusal of the bid price.
Out of the funds raised, 92.5% will be utilised to run PIA, while 7.5% will go to the government. The other 25% will remain with the government until the buyer decides to take the entirety.
The cash consideration will be paid through two-thirds of the purchase price offered within 90 days and the other one-third within 12 months.
It was pointed out that the privatisation structure ensures professional administration and new investment in PIA, which has 78 routes spread across the world with around 170 landing slots.
The government has guaranteed 12 months of job security for employees, while pensions, medical benefits, and other post-retirement perks will be handled by the holding company.
