The government has approved a key development in the national airline’s sale process as FFC joins PIA privatisation consortium, expanding the group set to acquire a majority stake in Pakistan International Airlines.
The Privatisation Commission confirmed that Fauji Fertiliser Company (FFC) meets all regulatory and eligibility requirements to participate in the buyer consortium. The decision was approved by the commission’s board, chaired by Prime Minister’s Adviser on Privatisation Muhammad Ali.
However, the move still requires final approval from the Cabinet Committee on Privatisation
The expanded consortium is preparing for the next stage of the transaction, which involves acquiring a 75% stake in Pakistan International Airlines.
The group originally won the bid in December with an offer of Rs135 billion, marking the largest privatisation deal in Pakistan in two decades.
The consortium is led by Arif Habib Corporation and previously included Fatima Fertiliser, AKD Group, City Schools and Lake City Holdings. With the expected addition of FFC, the buyer group will broaden further.
The privatisation framework allowed the consortium to nominate up to two additional members after it secured the winning bid. The deal now nears its first major financial milestone.
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In the initial closing stage, scheduled for late April, the consortium must pay roughly two-thirds of the total bid amount, estimated at about Rs83.3 billion. At that stage, the consortium will decide whether to buy the government’s remaining 25% stake, which the government will offer at a 12% premium.
That decision will determine whether the buyer group proceeds toward full ownership of the national airline. The PIA sale remains a central part of Pakistan’s broader IMF-supported economic reform programme.
Under the transaction structure, the deal will inject Rs. 124.87 billion directly into the airline rather than route the proceeds to the national treasury. Before the privatisation process began, the airline reportedly lost around Rs50 billion a year, making restructuring a key government priority.
