Pakistan International Airlines, recently auctioned as part of the government’s privatisation drive, plans to pursue strategic and technical partnerships to modernise operations and improve competitiveness, according to Arif Habib, Chief Executive of Arif Habib Corporation Limited (AHCL).
Speaking on Aaj News programme Rubaroo, Arif Habib said efforts were under way to induct a technical partner at the airline level. He added that the government retains an option on its remaining 25 percent shareholding in PIA, which could eventually be exercised and transferred to a new partner.
His remarks come after a consortium led by AHCL emerged last month as the successful bidder for a 75 percent stake in the national carrier, submitting a top bid of Rs135 billion. The bid exceeded both the government’s minimum asking price of Rs100 billion and the base price of Rs115 billion set at the start of the auction.
Arif Habib said the privatisation transaction allocates Rs125 billion for the rehabilitation and development of PIA. This includes Rs10 billion in cash, while Rs45 billion worth of shares will be transferred to the government as part of the deal.
Detailing the airline’s operational challenges, he said only 14 to 15 aircraft are currently serviceable, with several grounded due to shortages of engines and spare parts. Under the recovery plan, the fleet is expected to expand to 38 aircraft over the next three years.
Commenting on the broader economy, Arif Habib said Pakistan had moved onto a more stable macroeconomic path, pointing to easing inflation, higher foreign exchange reserves, improved government revenues, rising remittances and a reduction in the trade and current account deficits, particularly the latter.
He cautioned, however, that the recovery remains fragile. High electricity prices, elevated interest rates and a heavy tax burden, he said, continue to pose serious challenges and must be addressed to achieve sustained and meaningful economic growth.
