ISLAMABAD: The Arif Habib Consortium has expressed interest acquiring the remaining 25% shares of the national carrier, Pakistan International Airlines (PIA), media reported.
With this final purchase, the consortium will hold 100% ownership of the airline.
The consortium, which successfully bid Rs 135 billion for a 75% stake yesterday, includes the following members:
Arif Habib Corporation
City Schools (Pvt) Limited (Firoz family)
Lake City Holdings (Gohar Ejaz)
Fatima Fertilizer Company Limited (Mukhtar family)
AKD Group Holding Private Limited (Aqeel Karim Dhedhi)
The group is set to purchase the remaining 25% stake within the next three months (90 days).Upon completion of this transaction, PIA will become a fully private entity.
The sale of the final 25% share is expected to generate an additional Rs 45 billion for the government.
Yesterday, the Arif Habib Consortium has officially acquired Pakistan International Airlines (PIA), winning the privatisation bid with an offer of Rs135 billion.
The consortium purchased 75 percent of the national carrier’s shares, surpassing its closest competitor, the Lucky Consortium, whose final bid stood at Rs134 billion.
Officials said that under the terms of the deal, the government will receive Rs10.2 billion in cash immediately. This privatization marks the first major large-scale privatization in Pakistan in the last two decades and is expected to save taxpayers around Rs35 billion annually in subsidies and operational costs.
The acquisition of PIA is part of the government’s ongoing economic reform agenda aimed at restructuring loss-making state-owned enterprises and improving operational efficiency. Analysts say the privatization is a significant milestone, signaling renewed confidence in Pakistan’s investment climate.
Strong Competition Marks PIA Privatization Process
The PIA privatisation process saw three bids in the initial phase. A consortium led by Arif Habib Corporation Limited, including Fatima Fertiliser Company Limited, City Schools, and Lake City Holdings, had initially offered Rs115 billion.
The Lucky Group consortium, comprising Lucky Cement Limited, Hub Power Holdings Limited, Kohat Cement Company Limited, and Metro Ventures, submitted Rs101 billion, while domestic airline Air Blue (Private) Limited placed the lowest bid of Rs26.5 billion.
The bids were reviewed by the Privatisation Commission Board, which confirmed the reserve price at Rs100 billion. The second and final phase of open bidding between the Arif Habib Group and the Lucky Group determined the ultimate winner.
Adviser to the Prime Minister on Privatization, Muhammad Ali, called the development a “major milestone,” noting that no large-scale privatization had been conducted in the last 20 years. The government has emphasized transparency, broadcasting all bidding rounds live on television and streaming them across official social media platforms.
PIA privatisation is part of Prime Minister Shehbaz Sharif’s economic reform agenda, aimed at restructuring loss-making state-owned enterprises. Officials stated that under private ownership, the airline is expected to improve operational efficiency, financial performance, and restore its former standing as the country’s flagship carrier. –Agencies
