A consortium led by Arif Habib Corp is seeking new partners to strengthen Pakistan International Airlines. The group hopes to turn around the struggling airline.
The consortium acquired a 75% stake in PIA last month. Karachi-based tycoon Arif Habib told journalists that they are conducting due diligence to find partners who can add value. “A lot of people have shown interest,” he said.
Fauji Fertilizer Company Limited recently joined the Arif Habib Consortium. Together, the group acquired PIA for Rs135 billion ($482 million) in the privatization auction. This sale fulfilled a key condition set by the International Monetary Fund for its loan program.
PIA has relied on government bailouts for years due to heavy debts and operational inefficiencies. The airline struggled with an aging fleet, high losses, and political interference.
Past attempts to privatize PIA faced resistance from employees and opposition parties. The new owners plan to expand the fleet to 38 planes from the current 18. They also aim to hire new staff to improve operations.
The consortium will officially take over operations in April. Under government conditions, employees cannot be dismissed for one year. Existing staff will have this period to demonstrate performance and retain their jobs.
Arif Habib Corp and Fatima Fertilizer Ltd hold 25% of PIA. Military-run Fauji Fertilizer Ltd also holds 25%. The remaining 25% is shared by AKD Group, City Schools, and Lake City Holdings. The consortium may buy the remaining government stake at a premium.
The new PIA owners are signaling a major restructuring to revive the national carrier. They hope partnerships and fleet expansion will make the airline profitable.
This marks a significant step for Pakistan’s aviation sector. Industry experts say the move could modernize operations and improve customer service.
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