KARACHI – Significant progress has been made in the privatization of Pakistan International Airlines (PIA), as the Arif Habib Consortium has acquired 100% of PIA’s shares.
According to a PIA spokesperson, the consortium has deposited the payment for an additional 25% of the shares and submitted a bank guarantee of PKR 45 billion as part of the agreement. The consortium already owned 75% of the airline’s shares and had an option to purchase the remaining 25%.
The consortium is expected to take control of PIA in May. The Arif Habib Consortium comprises Arif Habib Limited, City School, AKD, along with companies such as Fauji Fertilizers, Lake City, and Fatima Group. The government had offered the consortium the option to acquire the remaining 25% stake.
The consortium first won a 75% stake in PIA during a high-profile live televised auction on December 23, 2025. They placed the winning bid of Rs135 billion (roughly $482 million), beating a rival offer from a Lucky Cement-backed group.
This deal was one of leading privatisation moves in Pakistan in recent times, the consortium exercised its option to purchase the government’s remaining 25% stake for an additional Rs45 billion, bringing the total valuation of the airline to approximately Rs180 billion. Once completed, this will give the new owners 100% control and allow them to run PIA as a fully private entity, free from government board representation.
The formal handover of management control is expected by the end of April 2026 or in early May at the latest. Privatisation Adviser Muhammad Ali and Arif Habib Ltd CEO Shahid Ali Habib have both indicated that all necessary conditions are being finalised for the transition.
