The Arif Habib PIA privatisation deal is entering its final phase, with the consortium reportedly informing the government of its intent to purchase the remaining 25% stake in Pakistan International Airlines (PIA).
According to sources, the consortium is prepared to pay Rs45 billion for the final stake. The move would grant the national carrier complete administrative and operational control, subject to the fulfilment of the terms of the existing agreement.
Earlier, the Arif Habib Consortium acquired 75% of PIA’s shares after winning the privatisation bid with an offer of Rs135 billion. The group surpassed its closest competitor, the Lucky Consortium, whose final bid stood slightly lower.
Arif Habib PIA Privatisation Deal and What It Means
Under the previous agreement, the government received an immediate cash component from the 75% stake sale. Officials described the transaction as the first major large-scale privatisation in two decades.
The privatisation forms part of the government’s broader economic reform agenda aimed at restructuring loss-making state-owned enterprises. Authorities believe private ownership will improve operational efficiency and financial performance.
Read: Arif Habib Consortium Seeks New Partner to Strengthen PIA Turnaround Plan
The bidding process saw multiple participants. In the final round, open bidding between the Arif Habib Group and the Lucky Group determined the winner. The Privatisation Commission Board confirmed the reserve price and oversaw a transparent process that was broadcast live.
Sources indicate that a significant management change at PIA is expected by the end of April, following the privatisation. Analysts say the development signals renewed investor confidence and a potential revival plan for the airline.
A previous attempt to privatise PIA had failed after a lower-than-expected bid was withdrawn due to financial and operational concerns. This time, officials have emphasised transparency and competitive bidding throughout the process.
