Fauji Fertiliser Company (FFC) has opted to join the Arif Habib–led group that secured the successful bid to acquire a 75 percent stake in Pakistan International Airlines (PIA), marking a key development in the airline’s privatisation process.
Arif Habib confirmed that FFC has formally come on board, adding that discussions are currently underway to finalise the structure and terms of its participation in the group. FFC was initially one of four shortlisted bidders for the PIA stake but had withdrawn before the bid submission stage. However, under the privatisation rules, companies that exit earlier are allowed to join the winning group later, subject to meeting eligibility criteria set by the Privatisation Commission.
Adviser to the Prime Minister on Privatisation welcomed FFC’s inclusion, saying it would strengthen the group’s financial base, management depth, and international exposure. He noted that PIA requires a strong and professionally managed ownership setup to evolve into a competitive international airline, and FFC’s presence would help support that goal. He also described Fauji Fertiliser as a well-established corporate entity with proven management capabilities, adding that its involvement would further reinforce the buyer group.
PIA Handover Expected by April 2026
Pakistan International Airlines is expected to be transferred to new private management by April 2026, subject to regulatory clearances and cabinet approval. The Arif Habib–led group offered Rs135 billion for a 75 percent stake, significantly higher than the government’s reserve price of Rs100 billion, marking a major breakthrough after years of failed privatisation attempts.
The deal now awaits approval from the Privatisation Commission Board and the federal cabinet, with a contract likely to be signed within two weeks. A 90-day period will follow to complete legal and regulatory requirements before financial close. The government will receive around Rs10 billion upfront and retain a 25 percent stake valued at approximately Rs45 billion, while most of the investment will be injected back into PIA to stabilise its finances. After successful bidding, What Key Reforms will PIA See Under Arif Habib?
Officials stressed that the transaction is aimed at reviving PIA through fresh capital, fleet expansion, and operational improvements. Closely monitored by the IMF, the privatisation is seen as a crucial reform step, especially as PIA has accumulated losses of around Rs500 billion over the past decade and currently operates only 18 aircraft
