Pakistan International Airlines (PIA) is moving closer to full privatization, as a consortium led by Arif Habib Corporation Limited has formally informed the Privatisation Commission of its plan to acquire the remaining 25 percent stake in the airline.
The update was shared through a notice submitted to the Pakistan Stock Exchange, indicating that management control is expected to be fully transferred by May 25, 2026. This transition will take place once all conditions outlined in the previously signed Share Purchase and Subscription Agreement are fulfilled.
The overall value of the transaction is estimated at around Rs. 180 billion. This includes approximately Rs. 55 billion to be paid to the government as part of the divestment, along with a planned injection of Rs. 125 billion in fresh capital to strengthen the airline’s operations.
According to officials, the new investment will be directed towards upgrading and expanding the airline’s fleet, launching additional routes, and improving service quality as well as operational efficiency.
The consortium behind the acquisition comprises several major business groups, including Fatima Fertilizer Company Limited, Lake City Holdings, The City School, AKD Group Holdings, and Fauji Fertilizer Company Limited, in addition to Arif Habib Corporation.
This development follows the group’s earlier purchase of a 75 percent stake in PIA for Rs. 135 billion, marking a significant milestone in the government’s privatization efforts. The complete takeover is expected to speed up restructuring plans, with a target to expand the airline’s fleet to around 50 aircraft by September 2026 as part of its long-term revival strategy.
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