PIA privatisation concluded as govt, Arif Habib-led consortium sign agreements

Pakistan on Thursday completed the privatisation of Pakistan International Airlines as the government and a consortium led by Arif Habib Corporation Limited signed transaction documents at a ceremony in the capital.

Prime Minister Shehbaz Sharif and Chief of Defence Forces and Army Staff Field Marshal Asim Munir witnessed the signing, which was also attended by federal ministers and senior officials.

The Arif Habib-led group had won the auction for 75 per cent shares of the national flag carrier in December last year with a bid of Rs135 billion.

Adviser to the Prime Minister on Privatisation Muhammad Ali said the signing marked one of the most significant milestones of the current government and described it as the largest privatisation transaction in Pakistan’s history.

He said total investment by the consortium would amount to Rs180 billion, equivalent to about $650 million. Of this, Rs125 billion, or around $450 million, would be invested directly into PIA as growth capital, while Rs55 billion, or about $200 million, would be paid to the government.

Ali said the injected capital would be used for fleet expansion, service improvement and private sector management to revive the airline. He added that the deal demonstrated Pakistan’s ability to structure and execute complex transactions through a competitive and transparent process, and showed strong participation by local investors.

Addressing the ceremony, Prime Minister Shehbaz congratulated the nation on the completion of PIA’s privatisation and praised Arif Habib and his team for stepping forward. He recalled the airline’s peak performance in the 1960s and expressed confidence that the new owners would restore its standing, with priority given to passenger comfort, safety and respect.

Arif Habib said the consortium had taken on the project as a national responsibility and confirmed that the entire investment was based on 100 per cent equity. He said the privatisation reflected positive business sentiment in the country and that passengers would be the main beneficiaries through improved services.

Habib said the consortium had already held talks with Boeing and would also engage with Airbus as it explored fleet options. He added that operational control of PIA would be assumed within three months.

He also announced that the consortium had decided to exercise the option to acquire the remaining 25 per cent shares of PIA, which would result in an additional Rs55 billion payment to the government.