KARACHI: The new owners of Pakistan International Airlines (PIA) are planning to bring in a technical partner and significantly expand the airline’s fleet as part of a broader strategy to modernise operations following the Rs135 billion privatisation deal.
The announcement was made by renowned industrialist Arif Habib, Chief Executive of Arif Habib Corporation Limited (AHCL), whose consortium recently acquired a majority stake in the national flag carrier.
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Technical Partnership Under Consideration
Speaking on Aaj News programme Rubaroo, Arif Habib said the new management is actively exploring the induction of a technical partner to strengthen operational efficiency and global competitiveness.
“We are working to bring in a technical partner as well,” he said, adding that any partnership would be at the airline level.
He noted that the government currently retains a 25% shareholding in PIA, with an option that could eventually be exercised and transferred to a new strategic partner in the future.
Rs135bn Bid Secures Majority Stake
The remarks follow the successful privatisation auction in which an AHCL-led consortium acquired a 75% stake in PIA with a top bid of Rs135 billion. The offer exceeded the government’s minimum price of Rs100 billion and the base price of Rs115 billion at which the auction commenced.
According to Arif Habib, the deal structure includes Rs125 billion earmarked for PIA’s rehabilitation and development, while Rs10 billion in cash and Rs45 billion in shares have been allocated to the government.
Fleet to Grow to 38 Aircraft in Three Years
Highlighting the airline’s operational challenges, Arif Habib revealed that only 14 to 15 aircraft are currently serviceable, with several planes grounded due to shortages of engines and spare parts.
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He said the new owners plan to expand PIA’s fleet to 38 aircraft within three years, a move aimed at restoring route capacity, improving service reliability, and strengthening the airline’s regional and international presence.
Economic Stability Improving, Challenges Remain
Commenting on the broader economic environment, Arif Habib said Pakistan has achieved a degree of macroeconomic stability, citing falling inflation, rising foreign exchange reserves, improved government revenues, increased remittances, and narrowing trade and current account deficits.
“These are positive trends,” he said, cautioning that the country is still far from achieving sustained economic growth.
He identified high electricity prices, elevated interest rates, and heavy taxation as major challenges that must be addressed to unlock long-term economic expansion.
Future Outlook for PIA
Industry observers believe that the combination of private-sector management, fresh capital, fleet expansion, and a potential technical partnership could mark a turning point for PIA, which has struggled for years with financial losses and operational inefficiencies.
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The new ownership has positioned the airline’s revival as a long-term process, with phased investments and structural reforms expected to play a central role in restoring PIA’s competitiveness.
