ISLAMABAD: Pakistan International Airlines (PIA) is expected to come under new ownership by April 2026 as part of a long-awaited privatisation deal, which will also inject fresh capital into the national carrier, the government’s privatisation chief said on Wednesday.
A consortium led by Arif Habib Corporation emerged as the highest bidder on Tuesday after a live-televised auction for a 75% stake in PIA. The group offered Rs135 billion, exceeding the government’s reserve price of Rs100 billion and marking a major breakthrough after a failed sale attempt last year.
Adviser to the Prime Minister on Privatisation Muhammad Ali said the government anticipates that the new owner will begin operating the airline by April next year. He added that the process has entered the final approval stage, with the Privatisation Commission board and the federal cabinet expected to give their clearance within days. Contract signing is likely within two weeks, while financial close is projected within 90 days, subject to regulatory and legal requirements.
Under the deal, the government will receive Rs10 billion in upfront cash and retain a 25% stake valued at around Rs45 billion. Ali stressed that the transaction was designed to strengthen PIA financially rather than merely transfer ownership.
The consortium includes Fatima Fertiliser, City School, and Lake City Holdings. Ali said additional partners, including a foreign airline, could join if they meet eligibility criteria. Employee contracts will remain unchanged for at least 12 months. The sale is being closely monitored by the IMF as a key test of Pakistan’s reform agenda.
