Bidding for a stake in PIA - Pakistan International Airlines (PK, Islamabad International) is expected to take place in the first week of August after six entities and/or consortia pre-qualified to do so.

The entities eligible to bid are AirBlue (PA, Karachi International), Arif Habib Corporation, Blue World City, Fly Jinnah (9P, Karachi International), Pak Ethanol Consortium, and YB Holdings Consortium and are reportedly inspecting PIA's assets and infrastructure this month. Two other potential bidders, Sardar Ashraf D Baluch Builders and Gerry’s International, were ruled out; Gerry's because of its financial position or lack thereof, and Sardar out of concerns over an unverified partner who is a Chinese national.

The government of Pakistan owns around 96% of PIA's shares and plans to sell at least 51% of them, plus management rights, to a private party. Islamabad had hoped a foreign operator, potentially a Gulf-based airline or a sovereign wealth fund from that region, would swoop in and take control. However, potential foreign buyers have steered clear, leaving a collection of domestic entities and consortia as the pre-qualified bidders. The Privatisation Commission will decide on the exact number of shares (between 51% and 100%) the government will sell closer to the conclusion of the disposal process.

The entire privatisation is expected to take up to five years, divided into three stages - the first taking one year to complete, the second one to three years, and the third stage three to five years. Federal Minister for Privatisation Abdul Aleem Khan recently told local news outlets that delays in the process to date had cost the treasury PKR850 billion rupees (USD3.05 billion), although he did not provide data to support that claim.

The sale of PIA has been further complicated by the European Commission retaining an airspace and airport ban on Pakistani-registered carriers. PIA had been counting on that being lifted and was planning a return to Paris CDG and London Heathrow. PIA says the ban is costing it around PKR40 billion (USD144 million) annually in lost revenue. Government officials reportedly met with the bidders this week to answer questions on the flight ban and its implications on the privatisation process and PIA's value.