KARACHI — A consortium led by the Arif Habib Group is moving to acquire the remaining 25% stake in Pakistan International Airlines (PIA), a step that would grant it full ownership of the national carrier as part of the government’s privatisation programme.
The group purchased a 75% stake in December for Rs135 billion (approximately $483 million). Under the agreement with Islamabad, it now has a 90-day window — ending in April — to initiate the acquisition of the remaining shares, valued at about Rs45 billion. The deal allows up to 12 months for the transfer of funds once the process begins.
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Full ownership would remove residual government shareholding and allow the new sponsors to restructure management and governance without state-appointed directors, according to details of the transaction.
Timeline and transaction terms
The privatisation agreement provides the consortium a defined period to exercise its option to purchase the outstanding shares. While the decision must be made within the 90-day timeframe, the extended payment window is intended to ease financing requirements.
The move comes as part of a broader effort to overhaul the airline’s financial and operational framework after years of mounting losses.
Turnaround and restructuring plans
The Arif Habib-led investor group has outlined plans to revive PIA through operational restructuring, fleet modernisation and service improvements. Industry observers say complete ownership would enable faster decision-making and greater flexibility in implementing reforms.
The consortium includes major corporate entities such as Fatima Fertiliser, Fauji Fertiliser Company, Lake City, The City School and AKD Group. Financial backing for the acquisition and restructuring is estimated at around Rs125 billion, with additional capital raising expected to support long-term revival plans.
Background of the divestment
PIA was delisted in 2024 after approval from the Securities and Exchange Commission of Pakistan and placed under PIA Holding Company Limited, a special-purpose entity created to manage the divestment process.
The government’s privatisation strategy aims to stabilise the airline’s finances and shift operational control to private management in an effort to restore competitiveness in regional and international markets.
If completed, the acquisition of the remaining stake would mark a significant milestone in Pakistan’s aviation sector reforms and the broader privatisation drive.
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