The PIA privatization deal has entered a new stage as the Arif Habib-led consortium begins looking for a strategic partner to support the airline’s turnaround. Arif Habib said the group is carrying out due diligence to find investors who can add financial strength and operational expertise. He added that several parties have already shown interest since the PIA privatization deal was finalized.
The consortium acquired a 75 percent majority stake in Pakistan International Airlines for Rs135 billion through a government auction. This sale was also tied to economic reform commitments, making the PIA privatization deal a key step in reducing the state’s financial burden. Officials expect private management to improve efficiency, restore routes, and raise service standards that declined under years of losses and political interference.
Fauji Fertiliser Company Limited has joined the consortium, adding institutional backing to the PIA privatization deal. Arif Habib Corp and Fatima Fertiliser together hold 25 percent, while Fauji Fertiliser owns another 25 percent. The remaining 25 percent is held by AKD Group, City Schools, and Lake City Holdings. The group may later buy the remaining government shares, depending on future performance under the PIA deal.
Under the takeover terms, the new owners will assume control in April and cannot lay off employees for one year. Workers will be reviewed on performance during this period, with a focus on training and productivity rather than job cuts. Management says this approach is needed to stabilize operations and rebuild trust after the PIA deal.
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PIA Privatization Deal Enters Next Stage with Partner Search
Fleet expansion is also planned, with aircraft expected to increase from 18 to about 38 over time. This will allow PIA to reopen suspended routes and improve flight schedules. Experts say this step is critical for revenue growth and long-term success of the PIA privatization deal.
PIA has long relied on government bailouts due to high debt, outdated aircraft, and weak management systems. Earlier privatization efforts failed because of protests and political pressure. This time, investors and officials believe the structure of the PIA privatization deal and interest from potential partners give the airline a better chance at recovery and stable growth.
