Arif Habib Consortium takes flight: PIA privatization deal sealed ‘Rs135b’
PROMISES REVIVAL OF NATIONAL AIRLINE
Aneel Ahmed Usmani
ISLAMABAD: In a landmark development for Pakistan’s aviation sector, the Arif Habib Corporation Limited-led consortium has emerged as the winning bidder for the privatization of Pakistan International Airlines (PIA), securing the majority stake with a final offer of Rs135 billion. The announcement marks the culmination of the government’s second televised attempt to privatize the national flag carrier.
The consortium, which includes Fatima Fertiliser Company Limited, City Schools, and Lake City Holdings Limited, now takes over 75% of PIA’s shares, with 92.5% of the proceeds earmarked for investments in the airline and the remaining 7.5% going to the federal government. Officials have confirmed that the remaining 25% stake retained by the government will remain under state ownership, with an option for the consortium to acquire it later.
Privatization Commission Chairman Muhammad Ali described the sale as a transformative step for PIA. “The Arif Habib-led consortium brings the expertise, capital, and vision necessary to revive PIA’s operational efficiency and restore its past glory,” he said.
The consortium has committed to infusing substantial capital into modernizing the airline’s fleet, enhancing operational processes, and expanding domestic and international routes. Industry analysts say the takeover could usher in a new era of professionalism, financial stability, and customer-focused service for the airline, which recently posted its first pre-tax profit in two decades.
Job security for PIA employees has been assured for 12 months, while pensions, medical benefits, and other post-retirement obligations will remain the responsibility of the holding company. Current salaries and benefits will continue under the new management.
Prime Minister Shehbaz Sharif lauded the process, calling it a “milestone in Pakistan’s economic reform agenda” and emphasizing that the government’s objective is to make PIA self-sustaining rather than simply selling it.
With 78 operational destinations and around 170 landing slots worldwide, the Arif Habib consortium now faces the challenge of turning the historic airline into a profitable and competitive carrier. Aviation experts say the move could not only strengthen Pakistan’s civil aviation sector but also boost investor confidence in the country’s privatization program.
The successful acquisition is expected to attract fresh investment, enhance service quality, and reconnect Pakistan to key international routes, signaling a promising future for the once-flagship carrier.
