New Delhi, Dec. 24 -- A consortium led by a Pakistani investment firm acquired a 75% stake in state-run Pakistan International Airlines on Tuesday during a televised auction, marking a major step in the government's long-delayed effort to privatize the loss-making national carrier.

The Arif Habib consortium submitted a winning bid of 135 billion rupees ($482 million) for the majority shareholding in PIA, which was once regarded as among the region's top airlines but has suffered decades of financial losses and mismanagement.

Finance Minister Muhammad Aurangzeb, speaking at the bidding ceremony, said the privatization process was transparent and competitive. He hoped that the new owners would help revive the airline.

The sale fulfills a...