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PIA Set for new Ownership by April,Receives Major Investment
Pakistan International Airlines (PIA) is poised to have a new owner by April of next year,pending approvals,and will receive a notable capital infusion as part of a landmark privatization deal,according to Muhammad Ali,Adviser to the Prime Minister on Privatisation. This marks a potential turning point for the financially struggling flag carrier.
A Breakthrough After Years of Attempts
The sale, finalized after a live-televised auction, could reshape Pakistan’s aviation landscape.
- A consortium led by Arif Habib Corporation secured a 75 percent stake in PIA for Rs135 billion.
- The government will receive approximately Rs10 billion upfront and retain a 25 percent stake valued at around Rs45 billion.
- The deal prioritizes injecting fresh capital into PIA to ensure its long-term viability.
- The International Monetary Fund is closely monitoring the privatization as a key economic reform.
The Arif Habib Corporation consortium emerged as the top bidder on Tuesday, securing a 75 percent stake in PIA, a breakthrough in the government’s long-delayed efforts to privatize the airline. The winning bid of Rs135 billion surpassed the government’s reserve price of Rs100 billion, a dramatic betterment from last year’s unsuccessful sale attempt.
What is the primary goal of this privatization? According to Muhammad Ali, the government’s aim isn’t simply to sell PIA and collect revenue, but to ensure the airline’s survival and future growth through considerable investment.
The process now moves to final approvals by the Privatisation Commission board and the cabinet, anticipated within days. Contract signing is expected within two weeks, followed by a 90-day period to fulfill regulatory and legal requirements. Ali explained in an interview that the government will receive roughly Rs10 billion in cash initially, while maintaining a 25 percent stake valued at approximately Rs45 billion.
The winning consortium includes Fatima, a fertilizer manufacturer; City Schools, a private school network; and Lake City Holdings Limited, a real estate firm. Fauji Fertiliser Company initially considered bidding but later withdrew from the process, though Ali noted they could still