ISLAMABAD: A significant breakthrough has emerged in the privatisation of Pakistan International Airlines, with the Arif Habib Consortium acquiring 100 percent of the airline’s shares.
The development marks a crucial stage in the government’s efforts to transfer ownership of the national carrier to the private sector, following months of negotiations and phased investment commitments.
According to a spokesperson for the consortium, the group has deposited the required funds for the remaining 25 percent stake, completing its full acquisition of PIA. As part of the agreement, a bank guarantee worth Rs45 billion has also been submitted, fulfilling a key financial condition tied to the transaction.
The consortium had previously secured a 75 percent stake in the airline, with an option granted by the government to purchase the remaining 25 percent. That option has now been exercised, effectively consolidating complete ownership under the private group.
Officials confirmed that the arrangement was structured to allow phased acquisition, ensuring financial compliance and operational continuity during the transition.
The Arif Habib Consortium comprises a range of prominent business entities, including Fauji Fertilizer Company, Lake City Holdings, and Fatima Group. Additional participants include Arif Habib Limited, The City School, and AKD Group, reflecting a broad-based investment coalition spanning multiple sectors of the economy.
Sources familiar with the process indicate that the consortium is expected to assume operational control of PIA by May, signalling the beginning of a new management phase for the airline. The timeline aligns with earlier projections and is subject to final regulatory and procedural formalities.
The government had extended the option to acquire the remaining 25 percent stake as part of the privatisation framework, allowing the consortium to expand its ownership upon meeting predefined financial and contractual obligations. With the submission of the bank guarantee and completion of payment, those conditions have now been satisfied.
