ISLAMABAD — Pakistan International Airlines (PIA) is expected to be managed by new owners from April next year, subject to final approvals, Adviser to the Prime Minister on Privatisation Muhammad Ali said. A consortium led by Arif Habib Corporation won the auction for a 75% stake in PIA, offering Rs135 billion, surpassing the government’s reserve price of Rs100 billion.
The deal, which injects fresh capital into the airline, requires final approvals from the Privatisation Commission and the cabinet, with contract signing expected within two weeks and financial close after 90 days. The government will receive Rs10 billion in cash upfront and retain a 25% stake valued around Rs45 billion.
Read more: Arif Habib Group acquires PIA for PKR 135 billion
Ali said the transaction ensures that all PIA employees will be retained for 12 months with unchanged contracts. The consortium also includes Fatima Fertiliser, City Schools, and Lake City Holdings, while Fauji Fertiliser may still join as a partner to strengthen finances and bring aviation expertise.
The privatisation is closely monitored by the IMF, which has pressured Pakistan to curb losses at state-owned enterprises. Ali said completing the deal would signal momentum on reforms, adding that private sector investment will expand the fleet, revamp aircraft, and improve service quality.
Ali also praised the support of PM Shehbaz Sharif, CDF Field Marshal Asim Munir, Deputy PM Ishaq Dar, Finance Minister Muhammad Aurangzeb, and the cabinet, stressing that private ownership is better suited to run the airline efficiently and sustainably.