ISLAMABAD – Arif Habib Group consortium got 75 percent stakes of Pakistan International Airlines (PIA), and the journey was not over. Now, the consortium is set to acquire remaining 25% government stake to get full control of national carrier.
With major move, the loss-making national air carrier is poised to shed its old baggage, embrace private management, entering new era of modernization, rebranding, and operational transformation. In major shake-up for Pakistan’s aviation sector, Arif Habib Group-led consortium announced plans to acquire the remaining 25% government stake in Pakistan International Airlines (PIA), giving it complete ownership of the national flag carrier.
Taking full control will allow Arif Habib group to implement management changes and steer PIA’s turnaround without interference from government-appointed board members.
CEO of Arif Habib Ltd said the change of sponsors is expected in late April or early May. Speaking with local publication, he said the move will enable airline to operate fully as a private entity, giving us the freedom to implement reforms swiftly and effectively.
The government provided 90-day window for the consortium to acquire the remaining 25% stake, valued at roughly Rs45 billion, with a deadline at the end of April. Under the agreement signed in January, the consortium has up to 12 months to complete fund transfer, making the acquisition fully achievable.
In December last year, Pakistan International Airlines (PIA) took historic step toward privatization and the auction, broadcast live on national television, marked government’s second attempt to privatize PIA after a previous effort had failed.
With government assuming most of PIA’s legacy debt and key bans lifted by the UK and EU, the airline was positioned for revival.
