Arif Habib Group Announces Plans to Acquire Remaining 25% Shares of PIA

Karachi: The Arif Habib Group consortium has announced its intention to purchase the remaining 25% government shares in Pakistan International Airlines (PIA), giving it full control of the national carrier.

According to Shahid Ali Habib, the consortium plans to finalize the decision in April, with payment to be completed within 12 months. Once all 100% shares are acquired, PIA will operate entirely as a private entity, independent of government-appointed members.

The consortium had previously acquired 75% of PIA shares in December 2024 for Rs 135 billion. Under the government’s privatization plan, the goal is to restructure the loss-making airline, expand its fleet, and improve passenger services to make it profitable. The remaining 25% shares are valued at approximately Rs 45 billion, with the final purchase deadline set for the end of April 2026.

The successful consortium includes [“organization”,”Arif Habib Limited”,”Pakistan financial group”], ilizer”,”Pakistani chemical company”], City School Lake City Holdings outbid competitors, including Lucky Group and Air Blue, during open bidding.

Experts note that PIA’s recent operational profitability, reported in April 2025 after 21 years of losses, was facilitated by the government assuming over Rs 650 billion of the airline’s debts. With a cleaner balance sheet and tax incentives, the privatized PIA is expected to operate profitably under full private ownership.

The government will retain only 7.5% of the proceeds from the 75% share sale, with the remaining funds reinvested into the airline to increase aircraft numbers and enhance performance. Employees will retain job protection and benefits for one year, while retired employees’ pensions, medical bills, and discounted tickets will be managed by PIA Holding Company.

PIA currently has 38 aircraft, 18 operational, with landing rights at 78 international airports, including London, European cities, and Canada, though U.S. operations remain restricted. The airline’s privatization marks the government’s second attempt after a failed bid in 2024, when only one company bid far below the reserve price.

Analysts believe full privatization will relieve the government from annual losses, as the airline’s debts and interest obligations have been largely absorbed by the state, making profitability achievable for the first time in decades.