Arif Habib, founder of one of Pakistan’s leading business groups, said his consortium plans to expand Pakistan International Airlines’ fleet to 64 aircraft in phases after acquiring a majority stake through the government’s privatisation programme.
The Arif Habib Corporation Limited-led consortium secured a 75% stake in PIA on Tuesday with the highest bid of Rs135 billion. The winning offer emerged after a competitive open-bidding round, during which the consortium raised its bid from Rs115 billion to outpace a rival group led by Lucky Cement Limited.
Speaking to a private news channel, Habib said the group also intends to acquire the remaining 25% stake. “We have 90 days, and we are keen to move towards full ownership,” he said, adding that the consortium has long sought complete control of the national carrier. Habib confirmed that Fauji Fertiliser Company has joined the consortium, strengthening its financial base.
#WATCH: “Presently there are 15 [aircraft] the PIA has in working and initially we plan to increase it to 38 and then 64.”
Arif Habib Group CEO tells Arab News new owners aim to turn PIA around by investing in aircraft, improve operations and give employees better opportunities.… pic.twitter.com/4rHKwJVeEp
— Arab News Pakistan (@arabnewspk) December 25, 2025Outlining operational plans, Habib said the fleet would grow to 38 aircraft in the first phase, then to 64 in the second. He noted that PIA currently carries liabilities of about Rs190 billion, while its assets are valued at roughly Rs180 billion.
Read: Arif Habib Group Secures PIA Bidding with Rs115 Billion Offer
Under the transaction structure, the government will receive Rs 10 billion in cash from the sale of the 75% stake, while the retained 25% shareholding is valued at around Rs 45 billion.
Approval process and safeguards
Adviser to the Prime Minister on Privatisation Muhammad Ali told Reuters that the airline is expected to come under new management by April, subject to final approvals.
The deal now moves to clearance by the Privatisation Commission Board and the federal cabinet, which officials expect within days. Contract signing is expected within two weeks, followed by financial close 90 days later to meet legal and regulatory requirements.
Ali said the government designed the transaction to inject fresh capital into PIA rather than transfer ownership. “We did not want a situation where the state sells the airline, takes the money, and the company still collapses,” he said.
He added that safeguards are in place, including retained earnest money and additional payments at closing, allowing the government to approach the second-highest bidder if the deal does not close.
Labour protections and IMF focus
Under the agreement, the new owners must retain all PIA employees for at least 12 months, with existing contracts unchanged. Ali noted that the airline’s workforce has already declined in recent years.
The privatisation is closely monitored by the International Monetary Fund, which has urged Pakistan to stem losses at state-owned enterprises.
Ali said the PIA transaction is a critical test of Pakistan’s reform credibility. Successfully closing the deal would signal momentum on broader privatisation plans, while failure could renew pressure on public finances.
