New owners of PIA are expected to take control from April 2026, following cabinet approvals, contract signing within weeks, and a 90-day financial close. Employees must be retained for 12 months with unchanged contracts. The deal prioritizes revival through fleet expansion, service improvements, and potential foreign partnerships, signaling broader reforms, reduced fiscal pressure, and enhanced investor confidence in Pakistan’s economy
Read More: https://theboardroompk.com/arif-habib-consortium-wins-pia-privatisation-bid-at-rs135-billion/
Pakistan International Airlines (PIA), once a leading carrier in Asia, has faced decades of financial turmoil, mismanagement, overstaffing, and massive debts exceeding $2.8 billion. Political interference, a 2020 pilot licensing scandal leading to international flight bans, and persistent annual losses burdened taxpayers with subsidies. Previous privatization attempts—in the 1990s, 2013 (halted by protests), and 2024 (failed due to low bids)—did not succeed. Recent restructuring included government assumption of legacy debts, workforce reduction, and lifting of EU/UK bans, making the airline viable. This sale aligns with IMF conditions under a $7 billion bailout, marking Pakistan’s first major privatization in nearly two decades.
Bidding Process and Winner
On December 23, 2025, a transparent live-televised auction in Islamabad saw a consortium led by Arif Habib Corporation—comprising Fatima Fertilizer, City Schools, and Lake City Holdings—emerge victorious with a Rs135 billion ($482 million) bid for 75% stake, surpassing the Rs100 billion reserve and rivals like Lucky Cement. The government receives about Rs10 billion upfront, retaining 25%. Privatization adviser Muhammad Ali emphasized safeguards, including fresh capital injection to prevent collapse post-sale.