KARACHI: The Arif Habib Consortium has formally conveyed its intention to acquire the remaining 25 percent shares of Pakistan International Airlines (PIA), according to sources cited by ARY News.
The consortium is reportedly prepared to offer Rs45 billion to secure the final stake, aiming to gain full administrative and operational control of the national carrier. However, the proposed purchase remains subject to the fulfillment of conditions outlined in the existing privatization agreement between the government and the consortium.
Sources indicate that significant management changes within PIA are expected by the end of April following the completion of the privatization process.
Earlier, the Arif Habib Consortium successfully acquired a 75 percent stake in PIA after winning the competitive privatization bid with an offer of Rs135 billion. The consortium narrowly outbid the Lucky Consortium, which submitted a final offer of Rs134 billion.
Under the agreed terms, the government is set to receive Rs10.2 billion in immediate cash proceeds. Officials have described the transaction as Pakistan’s first major large-scale privatization in nearly two decades, projecting annual savings of approximately Rs35 billion in subsidies and operational losses previously borne by taxpayers.
The PIA privatization forms a central part of Prime Minister Shehbaz Sharif’s broader economic reform agenda, which focuses on restructuring loss-making state-owned enterprises and enhancing operational efficiency. Analysts view the successful bidding process as a positive signal for investor confidence and Pakistan’s privatization framework.
The privatization attracted strong competition in its initial phase. A consortium led by Arif Habib Corporation Limited, alongside partners including Fatima Fertilizer Company Limited, The City School, and Lake City Holdings, initially offered Rs115 billion.
Meanwhile, the Lucky Group consortium — comprising Lucky Cement Limited, Hub Power Holdings Limited, Kohat Cement Company Limited, and Metro Ventures — submitted Rs101 billion in the first round. Airblue placed the lowest initial bid of Rs26.5 billion.
The Privatisation Commission reviewed the bids and confirmed a reserve price of Rs100 billion. A final open bidding round between the Arif Habib Consortium and the Lucky Consortium ultimately determined the winner. The government emphasized transparency throughout the process, broadcasting bidding proceedings live on television and official digital platforms.
A previous attempt to privatize PIA last year set a minimum price of $305 million for a 60 percent stake. However, the sole bid of $36 million from Blue World City was later withdrawn due to financial concerns and operational challenges faced by the airline.
With the acquisition of 75 percent already completed and plans underway to secure the remaining 25 percent, the Arif Habib Consortium is positioned to assume full control of PIA. The development is being viewed as a significant milestone in Pakistan’s privatization drive and a potential turning point for the revival of the country’s flagship airline.
