The Arif Habib Group-led consortium, which already acquired 75 percent of Pakistan International Airlines (PIA), is now preparing to purchase the remaining 25 percent government stake, aiming for full ownership of the national airline. This move marks a significant step toward privatization and complete operational control of PIA.
The acquisition of the remaining stake is expected to allow the consortium to modernize the airline, implement private management practices, and undertake a comprehensive rebranding. PIA, long burdened by losses and inefficiencies, is poised for a major transformation under private leadership, including operational reforms, managerial restructuring, and modernization initiatives. Full control will free the consortium from government-imposed restrictions and board interventions, enabling quicker and more decisive decision-making.
The CEO of Arif Habib Ltd stated that the change in sponsorship is likely to be finalized between late April and early May. He emphasized that acquiring full ownership will allow PIA to function entirely as a private entity, giving the consortium the flexibility to execute reforms and implement turnaround strategies efficiently.
Under the current agreement, the government has granted a 90-day window for the consortium to complete the acquisition of the remaining 25 percent stake, valued at approximately Rs45 billion. The arrangement allows up to 12 months for the fund transfer, making the full acquisition achievable within the planned timeframe.
This development follows the historic privatization auction held in December, which was broadcast live and marked the government’s second attempt to privatize PIA after a previous effort had failed. With the government assuming most of PIA’s legacy debt and international restrictions from the UK and EU lifted, the airline is better positioned for a revival under private ownership. The full acquisition by Arif Habib Group is expected to usher in a new era of operational efficiency, financial stability, and competitive positioning for Pakistan’s flag carrier.
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