Islamabad [Pakistan], December 21 (ANI): Pakistan International Airlines (PIA) has faced a significant setback in its privatisation process after Fauji Fertiliser Company Ltd formally withdrew from the bidding for a 75 per cent stake in the country's national carrier, just ahead of the deadline to submit sealed bids.

According to Geo News, citing a report by The News, officials from the Privatisation Commission said Fauji Fertiliser did not deposit the required earnest money on Saturday, the final submission date, and has informed the commission of its decision to opt out.

With its exit, three prequalified bidders remain in the race and are set to submit sealed bids by December 23.

The remaining bidders include Airblue (Pvt) Ltd; a consortium led by Lucky Cement, Hub Power Holdings, Kohat Cement, and Metro Ventures; and another consortium led by Arif Habib Corporation, which includes Fatima Fertiliser, City Schools, Lake City Holdings, and AKD Group Holdings, Geo News reported.

Officials said Fauji Fertiliser's withdrawal allows it the flexibility to potentially join a successful consortium at a later stage, an option that would not have been available had it formally submitted a bid.

Under the privatisation plan, bids are being invited for a 75 per cent stake in PIA, with the winning bidder given a 90-day option to purchase the remaining 25 per cent share held by the government, Geo News reported.

The bidding process will begin with sealed bids, followed by approval of the reserve price by the Privatisation Commission Board and the Cabinet Committee on Privatisation, after which bids will be opened publicly.

The government has assured PIA employees of one year of job security, while the holding company will manage pension and post-retirement liabilities.

Officials said the airline, which operates flights to 78 destinations and holds around 170 international landing slots, urgently needs fresh investment and professional management to revive its operations. (ANI)