KARACHI/ISLAMABAD: Arif Habib, Chairman of the Arif Habib Group, has suggested that the privatization of Pakistan International Airlines (PIA) is expected to be completed by the first week of October 2024.
Speaking with journalists at the Naya Nazimabad Gymkhana, Habib shared optimism about the bidding timeline, stating, “We anticipate the bidding for PIA to conclude by the first week of October 2024.”
He emphasized that any prospective buyer would need to add at least 20 aircraft to PIA’s fleet to maintain efficient operations. Habib expressed confidence that, with the right strategic steps, PIA could transition from a loss-making entity to a profitable one.
“PIA is operationally viable, and if issues related to debts and employees are resolved post-takeover, it could quickly become profitable,” he explained.
Habib also noted that potential buyers are seeking a 75% stake in PIA to gain majority control, with a restriction that the airline cannot be sold for three years after privatization.
He further mentioned that Rs 600 billion of PIA’s debt would be transferred to a holding company, while Rs 200 billion would remain with the buyer.
Arif Habib said that a large portion of PIA’s debt consists of tax liabilities and civil aviation dues. Allowing buyers a substantial timeframe to settle these debts would offer considerable relief and aid in the airline’s recovery, he added.
A significant challenge for PIA is its massive debt, he said, adding it amounts to Rs 800 billion.
