The Arif Habib Corporation-led consortium has formally notified the Privatization Commission of its intention to acquire the remaining 25 percent equity stake in Pakistan International Airlines (PIA), the commission announced on Thursday. This move paves the way for complete private-sector ownership of the national carrier.
Background of the Acquisition
Last year, the Arif Habib Group secured a 75 percent stake in PIA for Rs135 billion ($482 million) after several rounds of bidding. The deal valued the airline at Rs180 billion ($643 million). Pakistan had previously attempted to reform the debt-ridden airline, which had accumulated over $2.8 billion in financial losses over the years.
Consortium's Intent to Buy Remaining Stake
In February, Shahid Habib, CEO of Arif Habib Ltd., told Arab News that the consortium intended to purchase the remaining 25 percent stake. The Privatization Commission confirmed that the consortium has now notified its intent, leading to full private-sector ownership.
The commission stated that management control of the airline is expected to be transferred on or before May 25, subject to conditions outlined in the agreement signed on January 29 between the government and the consortium.
Investment Details
The total private sector investment in the transaction will amount to $643 million. Out of this, Rs55 billion ($196 million) will be payable to the government, while the remaining Rs125 billion ($446 million) will be injected as fresh equity into PIACL. The commission added that this equity injection will support fleet expansion, modernization, route development, and improvements in customer service and operational systems.
Consortium Members
The consortium includes AHCL, Fatima Fertilizer Company Limited, Lake City Holdings (Pvt) Limited, The City School (Pvt) Limited, AKD Group Holdings (Pvt) Limited, and Fauji Fertilizer Company (FFC) Limited.
