Pakistan International Airlines (PIA) is set to be operated by a private consortium from April 2026, following the sale of a 75% stake in the state‑owned carrier for Rs135 billion (about $482 million) in a televised auction, according to industry and government sources.
The Arif Habib‑led group emerged as the highest bidder in the December 23, 2025, auction, surpassing the government’s reserve price and marking the airline’s first major privatisation in nearly 20 years. The federal government will retain the remaining 25% stake, with possible future discussions on its transfer to the consortium or a strategic partner.
The transaction also includes plans to inject capital into the airline’s operations, with a focus on debt reduction and enhancing financial management. The new management is also expected to implement strategies for improving customer service and expanding routes to strengthen both domestic and international operations.
One of the key focus areas for the new management will be expanding Hajj and Umrah services, a significant source of revenue for the airline. This aligns with the consortium’s broader plan to rejuvenate PIA’s operations and enhance its offerings to religious travelers. As part of the sale agreement, Arif Habib and other representatives of the consortium expressed their commitment to improving PIA’s service quality, particularly in the religious tourism sector.
The privatisation is a key component of Pakistan’s broader economic reform agenda, supported by the International Monetary Fund (IMF), and is expected to signal restored investor confidence in state‑owned enterprise reform. The transaction is also viewed as a test case for whether disciplined private capital can revive loss‑making public entities.
