Arif Habib Consortium to Acquire Remaining 25% Stake in PIA

KARACHI: The Arif Habib Group-led consortium has announced its intention to purchase the remaining 25 percent shares of Pakistan International Airlines (PIA), a move that would grant it full ownership and complete control of the national carrier.

Chief Executive Officer of Arif Habib Limited, Shahid Ali Habib, said that once 100 percent ownership is secured, PIA will be able to operate entirely as a private entity, free from government-appointed board members.

Speaking to the BBC, he confirmed that the consortium has decided to acquire the remaining 25 percent stake. “A decision is expected in April, and payment will be made within the following 12 months,” he said.

It is worth noting that in December last year, the consortium acquired a 75 percent stake in PIA for Rs135 billion. The government’s objective behind privatizing the loss-making airline was to restructure operations, expand the aircraft fleet, and improve passenger services to turn the airline profitable.

Following the initial privatization, the government granted the consortium a 90-day deadline to exercise the option of purchasing the remaining shares, valued at approximately Rs45 billion. The final deadline is set for the end of April. Under an agreement finalized in January, the payment transfer period has been set at 12 months, making the transaction financially manageable.

The successful consortium comprises Fatima Fertilizer with 34.1 percent, Fauji Fertilizer Company holding 33.9 percent, Lake City with 16 percent, and a partnership between The City School and AKD Group holding 16 percent.

Shahid Ali Habib added that the turnaround plan for PIA includes improvements in staff performance, ticketing systems, as well as enhanced safety and security standards to restore the airline’s reputation and operational efficiency.