ISLAMABAD – Fauji Fertilizer Company has officially joined the Arif Habib Consortium for the privatization of Pakistan International Airlines (PIA).
A statement from the consortium confirmed Fauji Fertilizer’s inclusion, describing the partnership as a key element for the airline’s financial support and corporate expertise.
The consortium has successfully acquired a 75% stake in PIA after placing the highest bid of Rs135 billion.
The statement further outlined that Fauji Fertilizer will play a crucial role in the management structure of PIA. In the first year of operations, the consortium plans to invest Rs125 billion to upgrade ground operations.
Earlier, during the privatization process, the Arif Habib Consortium submitted the highest bid of Rs135 billion, securing the largest share of PIA. Lucky Consortium came in second with a bid of 134 billion rupees.
The privatization process involved multiple stages, with Lucky Consortium initially placing a bid of 101.5 billion rupees in the first phase, followed by a new bid of 120.25 billion rupees in the second phase. The Arif Habib Consortium raised its offer to 121 billion rupees in the second phase before ultimately placing the winning bid.
Privatization Commission Advisor, Mohammad Ali, clarified that the privatization of PIA is part of the government’s reform agenda, aiming not to sell the airline, but to stabilize and improve its operations. He added that the funds raised from the bid would be used to enhance the airline’s operations, with 92.5% of the amount allocated for PIA’s improvement.
