KARACHI (Web Desk) – A consortium led by Arif Habib Group has announced plans to acquire the remaining 25% government stake in Pakistan International Airlines (PIA), a move that could transfer full ownership of the national carrier to the private sector and mark a significant milestone in Pakistan’s ongoing privatization efforts.
According to the consortium’s chief executive, Shahid Ali Habib, the group has decided in principle to purchase the remaining shares. A formal decision is expected in April, with payment scheduled over a 12-month period under the agreed framework. If completed, the transaction would grant the consortium full control of PIA, allowing it to operate as a fully private airline free from government-appointed board members.
The development follows the consortium’s successful acquisition of a 75% stake in December through an open bidding process, where it offered 135 billion Pakistani rupees, outbidding competitors including Lucky Group and private airline Airblue. The government had set a minimum reserve price of 100 billion rupees.
The privatization aims to turn around the financially troubled airline through restructuring measures, fleet expansion, service improvements, and enhanced safety and operational standards. Officials say plans include upgrading staff performance, improving ticketing systems, increasing flight frequencies on profitable routes, and strengthening security procedures.
PIA has struggled with mounting losses for decades, becoming a major burden on the national treasury. The government restructured the airline’s balance sheet by transferring hundreds of billions of rupees in liabilities to a holding company, helping restore investor confidence. In 2024, PIA reported its first annual profit in more than two decades, with operational profit reaching 9.3 billion rupees and net profit of 26.2 billion rupees.
Currently, PIA operates a fleet of 38 aircraft, with 18 active, and holds landing rights at 78 international destinations, including key European cities and Canada. Employees are expected to receive job protection for at least one year following privatization, while pension and retirement obligations will remain under a government-managed holding company.
Experts say full privatization could reduce annual fiscal pressure on Pakistan’s budget while potentially modernizing the airline’s operations and improving competitiveness in the global aviation market.
