Pakistan, which has been relying on loans and aid, will auction its debt-laden airline, Pakistan International Airlines (PIA), on December 23, 2025. The government calls this live-broadcast bidding process the “final step” to fulfill a crucial requirement of its $7 billion IMF bailout package, according to Geo TV.
Pakistan to Auction PIA Under IMF Bailout Requirements
The sale will involve selling between 51% and 100% of PIA shares, including full management control. This action is a formal structural benchmark under the Extended Fund Facility (EFF). The IMF’s Executive Board will meet on December 8 to approve the next $1.2 billion payment ($1 billion from the EFF and $200 million from the climate facility). Completing the PIA bidding process by the end of the year is necessary for any future payments.
Four companies have pre-qualified for the bidding: Fauji Fertiliser Company Limited, part of the military-run Fauji Foundation, Lucky Cement Consortium, Arif Habib Corporation Consortium, and Air Blue Limited.
Military Influence and the Role of the Fauji Foundation
“We’re aiming for Rs 86 billion in privatisation proceeds this year. For PIA, in the last bidding round, 15% of the proceeds went to the government, while the rest stayed with the company,” Pakistan’s Privatisation Minister Muhammad Ali told Reuters last month.
The sale of PIA stakes would mark Pakistan’s first significant privatisation effort in twenty years, according to Dawn.
Fauji Fertiliser, as part of the Fauji Foundation, has become one of the largest corporate players in Pakistan, where the military is involved in many sectors. Field Marshal Asim Munir, currently the most powerful figure in Pakistan, does not hold a direct role on the Central Board of Directors (CBD) of Fauji Foundation. He appoints the Quartermaster General (QMG), who sits on the CBD of the Fauji Foundation.
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