Lahore (Javed Iqbal Butt): Pakistan International Airlines (PIA) has officially been privatized after a successful and competitive bidding process, marking a significant step in the government’s privatization policy. The Arif Habib Group secured the national airline with a final bid of Rs135 billion, surpassing the government’s reserve price of Rs100 billion.
Intense Half-Hour Bidding War
All participating consortiums in the auction were Pakistani entities. The Arif Habib Group initially offered Rs115 billion, while Lucky Cement Group entered the bidding at Rs101 billion. Over a span of 30 minutes, bids escalated rapidly—Lucky Cement raised its offer to Rs121 billion and later Rs128 billion, while Arif Habib countered with Rs126 billion before sealing the deal at Rs135 billion. Financial experts have praised the transparent and competitive process, calling it a positive signal for Pakistan’s investment climate.
Missed Opportunity: Pakistan Overseas Bank
Speaking to Nawa-e-Waqt, Javed Iqbal Butt, President of Pakistan Muslim League-N (Medina Munawara), stated that had the Pakistan Overseas Bank been established earlier, PIA could have been owned by overseas Pakistanis today. He emphasized that overseas Pakistanis remit nearly USD 38 billion annually, and if even USD 25 billion were routed through a dedicated overseas bank, its profits alone could have been sufficient to acquire and sustain major national institutions like PIA.
Economic Potential of an Overseas Bank
Javed Iqbal Butt revealed that he had formally proposed the establishment of Pakistan Overseas Bank to Deputy Prime Minister and Foreign Minister Ishaq Dar, who assured support and consultation with the State Bank of Pakistan. He also discussed the initiative with Barrister Amjad Malik, Vice Chairman of the Overseas Pakistanis Commission Punjab, who outlined legal procedures, licensing requirements, and governance structures involving major Pakistani business stakeholders.
According to Butt, a properly structured overseas bank with shares reserved for overseas Pakistanis would not only generate profits exceeding the Rs135 billion PIA sale price but would also fund welfare programs, business financing, and priority services for the overseas community.
Future Roadmap
He further disclosed that on 25 November 2025, Barrister Amjad Malik met a 20-member overseas delegation and committed to prioritizing the bank’s establishment. A follow-up meeting is scheduled for 25 December at the Overseas Pakistanis Commission Punjab to finalize the implementation strategy.
Expert Opinion
Economic analysts believe that while PIA’s privatization will provide immediate fiscal relief, long-term economic stability requires innovative mechanisms like the Pakistan Overseas Bank to better utilize remittances and empower overseas Pakistanis, who remain a backbone of the national economy.
