Consortium completes full takeover of PIA with Rs45bn guarantee, sets fleet expansion target

ISLAMABAD:Private investors have assumed full ownership of Pakistan International Airlines after acquiring the government’s remaining 25% stake, completing the transition of the airline into entirely private hands.

The acquisition was finalized after the consortium deposited a bank guarantee worth Rs45 billion with the government on Monday, the last day permitted for purchasing the remaining shares. The buyers have been allowed a one year period to make the payment, during which interest will be charged at 12% per annum, with the total liability decreasing if the amount is cleared ahead of schedule.

The latest transaction follows the group’s earlier purchase of a 75% shareholding in the airline last year for Rs135 billion. Of that amount, about Rs125 billion was earmarked for reinvestment into the airline, while the government retained the remaining Rs10 billion.

With ownership now consolidated, the airline’s management has set an operational target to expand the fleet to 50 aircraft by September 2026, compared with the current 21 operational planes. The expansion is intended to support Hajj operations and facilitate the launch of additional domestic and international routes.

According to Aqeel Karim Dhedhi, the airline has already received offers for around 120 aircraft from global suppliers, indicating strong external interest in participating in the carrier’s revival and expansion plans.

Following the completion of the transaction, the shareholding structure shows Arif Habib Corporation and Fatima Fertilizer Company jointly holding 34.1% stake, making them the largest shareholders in the fully privatized airline.

They are followed by Fauji Fertilizer Company Limited with a 34% stake, Lake City Holdings with 14%, the AKD Group holding 10.25%, and the City School with a 7.65% shareholding.