Cement Giants Among Top Bidders for PIA; Govt Approves JV Model for Roosevelt Hotel

The Privatisation Commission has cleared four local parties—three of them linked to the cement industry—to move forward in the bidding process for the acquisition of Pakistan International Airlines (PIA), marking a significant step toward the long-delayed privatisation of the struggling national carrier.

At a board meeting held on Tuesday, chaired by Muhammad Ali, Adviser to the Prime Minister on Privatisation, the commission approved the pre-qualification of four bidding groups based on technical, financial, and legal evaluation criteria. These were submitted through Statements of Qualification (SOQs) by five prospective buyers.

Among the pre-qualified bidders is a consortium consisting of Lucky Cement, Hub Power Holdings, Kohat Cement, and Metro Ventures. Another eligible consortium includes Arif Habib Corporation, Fatima Fertiliser, City Schools (Pvt) Ltd, and Lake City Holdings. Separately, Fauji Fertiliser Company, owned by the Fauji Foundation, was deemed qualified as a standalone private limited entity. Airblue (Pvt) Ltd, currently operating as an airline, was also cleared for bidding.

One consortium—comprising Augment Securities & Investments, Serene Air, Bahria Foundation, Mega C&S Holding, and Equitas Capital LLC—failed to meet the qualifications and has been excluded from the process.

All approved bidders will now enter the buy-side due diligence phase, a critical step in evaluating PIA’s financial health, operational status, and potential liabilities. The government plans to divest 51% to 100% of its shareholding in PIA along with management control. The final bidding round is expected to take place in the last quarter of 2025, between October and December.

This is the government’s second attempt to privatise the loss-making airline. In the previous round, the floor price was set at Rs85.03 billion, with a negative balance sheet of Rs45 billion. Since then, efforts have been made to clean up the company’s finances by removing more debt from its books, potentially improving its valuation ahead of the auction.

In a parallel development, the Cabinet Committee on Privatisation (CCOP)—chaired by Deputy Prime Minister Ishaq Dar—approved a joint venture model for the Roosevelt Hotel in New York, a high-value asset owned by PIA.

The transaction structure, proposed by the Privatisation Commission and previously recommended by financial advisors a year ago, envisions forming a joint venture with a development partner, instead of selling the hotel outright. This model aims to maximize long-term value, provide flexible exit options, and minimize future fiscal risks for the government.

Financial adviser Jones Lang LaSalle (JLL) Americas, hired at a fee of Rs2.2 billion, reported that the land and full development potential of the Roosevelt Hotel—including its 32-storey building—would be Pakistan’s contribution to the joint venture. The partner will be selected after a competitive process, and a contribution agreement will be signed immediately, followed by a joint venture agreement in 2027.

The selected development partner will be required to make two initial deposits, and will manage the property under the new structure. While the model carries higher risk, JLL concluded that it would yield the highest net returns for Pakistan in the long term.

Both decisions—on PIA and the Roosevelt Hotel—signal the government’s renewed push toward privatisation and economic reform, with a focus on transparency, market competitiveness, and investor confidence.