ISLAMABAD: The federal government has finally handed over PIA to the Arif Habib-led consortium following the national flag carrier’s privatization.
The move marks a significant step in the federal government’s privatization and reform agenda. Representatives of the Government of Pakistan and the private consortium signed the transaction documents to complete the handover of the PIA.
Privatization deal formalizes new ownership
According to official sources, the government sold a 75 percent stake in PIA last month for Rs135 billion as part of broader structural reforms agreed with the International Monetary Fund. Consequently, the transaction aimed to reduce fiscal pressure while encouraging private-sector efficiency in state-owned enterprises. Upon signing the documents, the Arif Habib-led consortium has assumed operational and strategic control of the airline.
The new owners have committed to reviving PIA through operational reforms, improved governance, and a comprehensive turnaround strategy. Moreover, the consortium plans to modernize the airline’s aging fleet and enhance service quality to regain competitiveness in both domestic and international markets.
Fleet expansion and workforce plans outlined
Under the proposed business plan, the consortium intends to expand PIA’s fleet to 38 aircraft from the current 18. This expansion aims to increase route capacity, improve connectivity, and strengthen the airline’s market presence. In addition, the new management plans to recruit skilled professionals to support technical, operational, and customer service functions.
At the same time, authorities confirmed that the consortium cannot lay off existing employees for one year. During this period, management will assess staff performance and retain employees based on operational requirements and efficiency benchmarks. This condition aims to ensure workforce stability while allowing gradual restructuring.
The revised ownership structure reflects a diversified investor base. Arif Habib Corporation and Fatima Fertilizer Limited jointly hold a 25 percent stake, while Fauji Fertilizer Company Limited owns another 25 percent. The remaining 25 percent is shared by AKD Group, City Schools, and Lake City Holdings.
Officials believe the privatization will strengthen PIA’s financial position, improve governance, and reduce the burden on public finances over the long term.
