Arif Habib Corporation Limited (AHCL) led a consortium that has been declared the highest-ranked bidder in the privatization process of Pakistan International Airlines Corporation Limited (PIACL), with a bid of Rs 135 billion for a 75% equity stake. The bid was submitted on December 23, 2025, following a competitive bidding process.
However, in line with the prescribed privatisation process, confirmation of acceptance of the bid price remains subject to the requisite approvals, including approvals and recommendations of the Board of the Privatisation Commission and the decision of the Government of Pakistan and the Federal Cabinet, accoridng to separate notifications submitted by the Arif Habib Group and Fatima Fertilizer Company to the Pakistan Stock Exchange (PSX) on Wednesday.
Once these approvals are granted, the successful bidder will be officially declared, and a Letter of Acceptance will be issued.
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The consortium, comprising Fatima Fertilizer Company Limited, The Lake City Holdings (Private) Limited, AKD Group Holdings (Private) Limited, and City Schools (Private) Limited, is poised to acquire a major stake in PIACL. This marks a significant step towards the privatisation of the national carrier, which has been under financial strain for years.
The government’s effort to privatise PIACL aims to revitalise the airline and reduce the financial burden on the national exchequer. The consortium’s offer is considered a crucial development in this ongoing process. The authorities are expected to proceed with the formalities to finalise the deal, contingent on securing necessary regulatory approvals.
Due to confidentiality obligations and considerations of national interest, AHL said it shall continue to make timely disclosures of all material and price-sensitive information to the SECP and the PSX, in compliance with applicable laws and regulations.
Meanwhile, the PIA Holding Company Limited said, in a separate notice to the PSX, that a 7.5% (Rs10.125 billion) of the bid amount will be received by the Government of Pakistan through PIAHCL under the set terms of this transaction, whereas the remaining 92.5% (Rs124.875 billion) of the bid amount will be invested in PIACL in form of new equity via ‘Rights Issue’ in two tranches i.e. two-third as upfront payment (Rs83.25 billion) and onethird as the second tranche (Rs41.625 billion) to be invested within 12 months of financial close.
