The Privatisation Commission on Tuesday approved the reference price for the national flag carriers PIA, completing another milestone in its privatisation process.

According to sources, the reference price approved by the Privatisation Commission Board will now be presented to the Cabinet Committee on Privatisation (CCoP) for detailed consideration.

If endorsed by the committee, the reference price will be submitted to the federal cabinet for final approval.

It is pertinent to note that the privatisation process for 75 per cent of PIA’s shares is underway in Islamabad.

As per the Privatisation Commission, bidders earlier today submitted their sealed bids between 10.30am and 11.30am.

The bids are scheduled to be opened at 4.30pm in the presence of the media and representatives of the bidding parties.

The step-by-step privatisation process for the 75% shares of the national airline is underway, with Adviser to the Prime Minister on Privatisation, Muhammad Ali, attending the event.

In the first phase, all three participating consortia submitted their bids.

Three bidders are in the race for PIA privatisation. One consortium comprises Lucky Cement Limited, Hub Power Holdings Limited, Kohat Cement Company Limited and Metro Ventures (Private) Limited.

The second consortium includes Arif Habib Corporation Limited, Fatima Fertiliser Company Limited, City Schools (Private) Limited and Lake City Holdings (Private) Limited. The third bidder is Airblue (Private) Limited.

The reference price and the received bids will be announced at the time of opening, and the entire process will be conducted in line with prescribed rules.

The bids would be opened in a ceremony which would start at 3.30pm in the presence of the bidders.

The event would be telecast live on TV and digital media.

Adviser to the Prime Minister on Privatisation Muhammad Ali would also hold a press conference after the conclusion of the bidding process.

Under the government’s plan, the successful bidder will also have the right to purchase the remaining 25% stake in PIA, with a 90-day window to exercise the option.

The sources said the prospective new investor will be required to invest at least Rs80 billion over the next five years to improve the airline and stabilise its operations.

The Privatisation Commission said 92.5% of the proceeds from the sale of the 75% stake will be reinvested into PIA, while 7.5% will be transferred to the government.

The move aims to ensure that the bulk of the funds are used directly for the revival and growth of the national airline.

The Privatisation Commission said any bid above the reference price will be accepted.

If bids fall below the reference price, the highest bidder will be given an opportunity to match the reference price.

Once the successful bidder is determined, the process for acquiring the remaining shares will begin.

To protect PIA employees, the commission said job security will be guaranteed for one year, while responsibility for pensions and post-retirement benefits will rest with the holding company.

The government had earlier decided to sell 100% of PIA’s shares, but later opted to retain a 25% stake.

Under the revised plan, the remaining shares will be offered to the successful bidder at a 12% premium, with the option to make payment after one year.

The government says the arrangement has made the privatisation process more transparent and viable for investors.

Officials said the bidding process will be broadcast live on television to ensure transparency and keep the public informed about the major decision.