A consortium led by Arif Habib Corporation is exploring the induction of a new strategic partner to reinforce its plan to revive Pakistan International Airlines following the acquisition of a majority stake.
Arif Habib, head of the Karachi-based group, said the consortium is conducting due diligence to identify partners who can add operational and financial value. Speaking to journalists on Sunday, he said several parties have already expressed interest.
The comments follow the recent entry of Fauji Fertiliser Company Limited into the Arif Habib Consortium. The group acquired a 75 per cent stake in PIA last month, winning a bid of Rs135 billion in the airline’s privatisation auction.
The federal government sold its majority holding for Rs135 billion, or about $482 million. The transaction fulfilled a key condition set by the International Monetary Fund under Pakistan’s loan programme.
PIA has relied on repeated government bailouts over the years. The airline struggled with heavy losses, rising debt, operational inefficiencies, an ageing fleet, and political interference. Previous privatisation efforts failed due to resistance from employee unions and opposition parties.
Habib said the new owners plan to expand PIA’s fleet to 38 aircraft from the current 18. The consortium also intends to expand operations and hire additional staff as part of its turnaround strategy.
Under the privatisation terms, the consortium will assume operational control in April. The agreement bars the new owners from laying off employees for one year. Existing staff will have that period to demonstrate performance for retention.
Habib said Fatima Fertiliser and Arif Habib Corporation together hold 25 per cent of PIA, while Fauji Fertiliser owns another 25 per cent. The remaining 25 per cent stake is held by a group that includes AKD Group, City Schools, and Lake City Holdings.
The consortium also retains the option to purchase the remaining government stake at a premium in the future.
