Pakistan’s national flag carrier, Pakistan International Airlines, is expected to change hands by April 2026. This follows a breakthrough privatisation deal that also brings fresh capital into the airline.
A consortium led by Arif Habib Corporation emerged as the highest bidder on Tuesday during a live, televised auction for a 75% stake in Pakistan International Airlines (PIA). The group submitted a bid of Rs135 billion, which significantly surpassed the government’s reserve price of Rs100 billion. This marked a turnaround from last year’s unsuccessful sale attempt.
Adviser to the Prime Minister on Privatisation, Muhammad Ali, said the process is now moving toward final approvals from the Privatisation Commission Board and the federal cabinet. These are expected within days. He added that the contract signing is likely within two weeks. Moreover, the financial close is anticipated after 90 days, subject to regulatory and legal clearances.
Under the transaction structure, the government will receive Rs 10 billion in upfront cash. Meanwhile, they will retain a 25% stake in the airline, valued at approximately Rs 45 billion. Ali said the deal was designed to strengthen PIA’s financial position rather than merely transfer ownership.
Read: Arif Habib Group Secures PIA Bidding with Rs115 Billion Offer
He stressed that the government wanted to avoid a scenario in which it exits the airline leaving it financially unstable. The winning consortium also includes Fatima Fertiliser, City School, and Lake City Holdings Limited.
Ali further noted that Fauji Fertiliser Company, which did not submit a bid, may still join the consortium as a partner. This is possible if it meets the required criteria. The buyer may add up to two partners, including a foreign airline. Officials believe this move could strengthen the airline’s finances and bring international aviation expertise to PIA.
If approvals proceed as planned, officials expect the new owners to assume operational control of the airline by April next year. This marks a critical step in Pakistan’s long-running effort to revive and reform its national carrier.
