PIA Enters New Era as Arif Habib Consortium Takes Control in Historic Privatization

ISLAMABAD: Pakistan International Airlines (PIA) has officially entered a new chapter after administrative control of the national carrier was transferred to PIA Equity Ltd, a company backed by the Arif Habib Consortium, following the completion of regulatory approvals and the first financial close.

The transaction, valued at Rs180 billion, is being described as the largest privatization deal in Pakistan’s history. Under the agreement, Rs125 billion will be invested to modernize the airline, while Rs55 billion will be paid to the government as proceeds from the sale.

The consortium has already deposited the initial payment required to complete the takeover process, officially marking the beginning of private management after more than seven decades of state ownership.

For years, PIA struggled with mounting financial losses, an ageing fleet and shrinking international operations despite once being regarded as one of Asia’s leading airlines. The new management says its priority is to rebuild passenger confidence by improving reliability, expanding routes and upgrading customer services.

Part of the investment plan involves fleet renewal, operational improvements, as well as the implementation of modern management practices with the goal of ensuring the airline’s financial sustainability in the long term.
PIA Equity Ltd has the backing of leading business groups in Pakistan including Arif Habib Group, Fatima Fertiliser, Fauji Fertiliser Company, Lake City Holdings and The City School and AKD Group Holdings.
The consortium got the contract by winning a competitive privatization process, just edging out rival bidders. The sale comes after the government has made several efforts to restructure the airline and bring in private capital into the business over the past few years.
Ownership transfer is considered as one of the major reforms in Pakistan’s aviation industry and will be closely monitored as the new management starts gearing up to revive Pakistan’s national flag carrier.

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