Islamabad: The federal government on Tuesday concluded the long-delayed privatisation of Pakistan International Airlines (PIA), with the Arif Habib-led consortium emerging as the successful bidder for a 75% stake in the national flag carrier at a price of PKR 135 billion.
The winning consortium comprises Arif Habib Corporation Limited, Fatima Fertilizer Company Limited, City Schools (Private) Limited, and Lake City Holdings (Private) Limited, securing both ownership and management control of the airline.
According to official details, the government will receive PKR 10.12 billion in cash, while the remaining proceeds will be reinvested into PIA to support operational restructuring and future expansion. Under the transaction structure, 92.5% of the proceeds will go into the company, with the government retaining the remaining 25% shareholding, which the successful bidder may acquire at a later stage.
The bidding process entered a second round after multiple offers exceeded the government’s minimum expected price of PKR 100 billion. In the final phase, the Arif Habib-led group outbid the Lucky consortium, which placed a last offer of PKR 134 billion before conceding the auction.
The Privatisation Commission said the bidding process was conducted in a transparent manner, with bids opened in the presence of the media. Officials noted that the sale marks a key milestone in the government’s broader economic reform and privatisation agenda aimed at reducing losses in state-owned enterprises.
PIA has faced prolonged financial difficulties, recording cumulative losses estimated at PKR 800 billion over the past two decades, and has relied heavily on government support. The privatisation plan is intended to stabilise the airline, improve governance, and restore its commercial viability.
The government had previously failed to privatise PIA due to weak investor interest and pricing concerns. The process was restarted earlier this year as part of efforts linked to Pakistan’s ongoing International Monetary Fund (IMF) programme, which calls for structural reforms and fiscal discipline.
Officials said the airline’s business plan projects fleet expansion over the next few years under private management, signalling a new phase for the national carrier following years of operational and financial strain.
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