KARACHI – Arif Habib Consortium has officially won the open bidding to acquire Pakistan International Airlines (PIA) with a staggering Rs135 billion bid, marking a historic step in the airline’s privatization.
The auction drew widespread attention as two other major bidders, Lucky Group and Airblue, competed for PIA. Lucky Group submitted Rs101.5 billion, while Airblue offered Rs26.5 billion. The Arif Habib Consortium initially led with Rs115 billion and ultimately secured victory with Rs135 billion in the final bidding round.
The Arif Habib Consortium is a powerful partnership of top Pakistani companies, including Arif Habib Limited, Fatima Fertilizer, City School, and Lake City Holdings. The winning bid grants them 75% of PIA’s shares, with the option to acquire the remaining 25% within 90 days.
Under the privatization framework, only 7.5% of the sale proceeds go directly to the government. The remaining amount will be reinvested in PIA to modernize its fleet, improve operations, and strengthen the airline’s financial position.
PIA has recently posted a net profit of Rs26.2 billion for FY2024, a sharp reversal from a Rs75 billion loss in 2023. Experts credit this improvement to government debt absorption and operational reforms, which have enhanced the airline’s efficiency and margins.
The airline currently operates 38 aircraft, with 18 active planes, and holds landing rights at 78 international airports, excluding U.S. operations. PIA’s workforce has been downsized from 11,500 to 6,500 employees. Post-privatization, job security is guaranteed for one year, with voluntary exits expected thereafter.
Assets like PIA-owned hotels in New York and Paris are not part of the deal. Only operational divisions, cargo, passenger services, kitchens, and training facilities are included. Analysts say privatization will relieve the government from recurring losses while ensuring PIA becomes a profit-generating airline.
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This landmark deal positions PIA for a global turnaround. Experts say the Arif Habib Consortium now has the responsibility to transform Pakistan’s national carrier into a competitive, financially sustainable airline.
