ISLAMABAD: Fauji Fertilizer Company Limited (FFC), one of Pakistan’s leading fertilizer producers, has officially expressed interest in acquiring shares of Pakistan International Airlines Corporation Limited (PIACL), the country’s national carrier which is currently undergoing privatization.
According to a private media report, FFC informed the Pakistan Stock Exchange (PSX) through a formal notice.
The notice stated that the company’s Board of Directors, during its 234th meeting held on June 13, 2025, approved the submission of an Expression of Interest (EoI) and prequalification documents to the Privatization Commission for the potential acquisition of PIA shares. FFC also plans to carry out a complete due diligence of the airline.
FFC is a public limited company in Pakistan and operates in the manufacturing, purchasing, and marketing of fertilizers and chemicals. It also invests in related sectors including cement, food processing, energy, and banking.
PIACL, Pakistan’s national airline, is a public limited company. The federal government, through the PIA Holding Company, owns around 96% of its issued capital.
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PIA offers full aviation services, supported by its various departments. In the last financial year, the airline carried around 4 million passengers across 30 domestic and international destinations, operating 268 flights per week.
The government had earlier set a deadline of June 3, 2025, for submission of EoIs, but later extended it to June 19, 2025, with no changes in the terms and conditions.
The federal government aims to sell 51% to 100% of its stake in the financially struggling airline. This move is part of wider reforms under a $7 billion IMF programme, which includes reducing losses from state-owned enterprises (SOEs).
Last year, the privatization attempt failed after only one bid was received — a Rs10 billion offer from the Blue World City consortium for a 60% stake. This offer fell far short of the Privatisation Commission’s expectations of Rs85.03 billion, and the process was cancelled.
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To attract more bidders this time, the Privatization Commission has been organizing investor briefings. The latest session was held at a private hotel in Karachi, following earlier briefings in Lahore and Islamabad. During these events, investors were briefed on PIA’s routes, assets, staff, and revenues.
Interested buyers were earlier asked to submit their applications by June 3, along with a non-refundable deposit of $5,000 or Rs1.4 million.
The privatization plan covers all major business segments of PIA, including passenger services, cargo, ground handling, flight kitchen, engineering, and flight training.
The government relaunched the privatization process officially on April 24, 2025, under pressure to reform loss-making entities as part of its IMF commitments.