AirBlue (PA, Karachi International) is one of four prequalified bidders for a majority stake in PIA - Pakistan International Airlines (PK, Islamabad International), the debt-ridden national airline, according to a statement by the Ministry of Privatisation. The Pakistani carrier is also the sole aviation industry enterprise in the process.

The Privatisation Commission Board approved the prequalification of four proposed investors in PIA during a July 8 meeting.

Apart from privately-owned AirBlue, other prospective bidders include:

  • a consortium comprising Lucky Cement Limited, Hub Power Holdings Limited, Kohat Cement Company Limited, and Metro Ventures (Private) Limited;
  • another consortium including Arif Habib Corporation Limited, Fatima Fertiliser Company Limited, City Schools (Private) Limited, and Lake City Holdings (Private) Limited; and
  • Fauji Fertiliser Company Limited.

The prequalified parties would now proceed to the due diligence phase, the ministry said. Reuters reported that the review process is expected to last between two and two and a half months, with the final stage of bidding and negotiations scheduled for the fourth quarter of 2025.

The government wants to divest a 51% to 100% stake in the struggling airline to raise funds and reform loss-making state-owned enterprises as part of a USD7 billion programme supervised by the International Monetary Fund (IMF).

The ministry also announced that the Cabinet Committee on Privatisation (CCOP) on July 8 approved a joint venture model as the preferred transaction structure for the privatisation of the Roosevelt Hotel in New York, as proposed by the Privatisation Commission Board. The ministry said the JV option aimed to maximise the long-term value of the hotel for Pakistan.

PIA has been a long-time owner of the hotel, using it as a valuable asset abroad. The hotel closed in 2020 due to financial struggles exacerbated by the COVID-19 pandemic, but was leased to New York City in 2023 for three years, which repurposed it as a migrant shelter and arrival centre for asylum seekers. However, in early 2024, New York City announced it would end the lease.