The Arif Habib-led consortium has announced plans to acquire the remaining 25 percent government stake in Pakistan International Airlines. If completed, the move will grant the group full control of the national carrier. Consequently, the transition could mark a decisive phase in PIA’s privatization journey.
In December 2025, the consortium purchased a 75 percent stake in PIA for Rs135 billion. The acquisition aimed to revive the loss-making airline through operational restructuring and fleet expansion. Moreover, the group pledged to improve customer service standards.
Plan to Acquire Remaining 25 Percent Stake
The consortium now seeks to buy the remaining 25 percent stake for approximately Rs45 billion. The government has provided a 90-day window for this purchase. Therefore, the deadline falls at the end of April.
An agreement signed in January allows a 12-month period for the transfer of funds. As a result, the acquisition remains financially viable for the investors.
Shahid Ali Habib, Chief Executive Officer of Arif Habib Ltd, stated that the change of sponsors is expected by late April or early May. Once completed, the airline will operate as a private entity. Furthermore, the new structure will remove government-appointed board members.
Financial Backing and Reform Strategy
The winning consortium includes Fatima Fertiliser with 34.1 percent, Fauji Fertiliser with 33.9 percent, Lake City with 16 percent, and the City School along with AKD Group holding 16 percent. Together, these partners form a diversified investment group.
The new management will operate with financial backing of Rs125 billion. Consequently, the board will have flexibility to implement reforms. The leadership also plans to raise additional capital to support PIA’s rebranding efforts.
Moreover, full control will enable faster decision-making. This shift may accelerate operational improvements and strategic restructuring.
Background of PIA’s Privatization
PIA was established in 1955 and later became a public limited company in 2016 under the Pakistan International Airlines (Conversion) Act. However, persistent financial losses prompted structural changes.
In May 2024, following approval from the Securities and Exchange Commission of Pakistan, PIA was delisted from the stock exchange. It then became a wholly owned subsidiary of PIA Holding Company Ltd. The holding company was formed in March 2024 to oversee privatization.
Therefore, the current move represents the final step toward complete private ownership.
What Full Control Could Mean for PIA
If the acquisition concludes on schedule, the consortium will gain complete authority over management decisions. This development could streamline governance and improve efficiency. However, the success of the revival plan will depend on effective implementation.
The coming months will prove critical for Pakistan International Airlines. Full privatization may reshape its operational direction and long-term sustainability.
