Arif Habib-Led Consortium to Acquire Full Control of PIA
By Shahzad Paracha :
A business consortium led by the Arif Habib Group has announced plans to purchase the remaining 25 percent shareholding of the government in Pakistan International Airlines, a move that would grant the group complete ownership of the national carrier.
The consortium had earlier acquired a 75 percent stake in the airline in December 2025 for Rs135 billion, aiming to turn around the struggling company through operational reforms, fleet modernisation, and improved passenger services. With full control, the group intends to accelerate its restructuring strategy and streamline decision-making.
Shahid Ali Habib, Chief Executive Officer of Arif Habib Ltd, said the transition would allow the airline to function as a fully private enterprise, without the involvement of government-nominated board members. He added that the formal change in sponsorship is expected to take place by late April or early May.
Under the agreement, the government has provided a 90-day period for the consortium to acquire the remaining shares, estimated at around Rs45 billion, with the deadline falling at the end of April. Although the contract allows up to 12 months for payment, the group has indicated its intention to move forward within the current timeframe.
The investor group includes Fatima Fertiliser (34.1 percent), Fauji Fertiliser (33.9 percent), Lake City (16 percent), and The City School along with the AKD (Aqeel Karim Dhedhi) Group (16 percent).
Backed by financial commitments of approximately Rs125 billion, the new management is expected to introduce wide-ranging reforms, while the reconstituted board will focus on raising additional capital and repositioning the airline’s brand.
Established in 1955, PIA was converted into a public limited company in 2016 under the Pakistan International Airlines (Conversion) Act. In May 2024, following approval from the Securities and Exchange Commission of Pakistan, the airline was delisted from the stock exchange and became a wholly owned subsidiary of PIA Holding Company Limited, a special entity created to manage its privatisation process.
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