KARACHI: Pakistan has moved closer to fully privatising Pakistan International Airlines (PIA) after a private consortium formally expressed interest in acquiring the government’s remaining 25 percent stake in the national carrier. The development marks a significant step in Pakistan’s economic reform and privatisation agenda aimed at reviving the struggling airline.
According to the Ministry of Privatisation, the consortium led by Arif Habib Corporation Limited has submitted an official notice to purchase the remaining shares of PIA. Once the process is completed, the airline will become fully owned by the private sector for the first time in Pakistan’s history.
Officials confirmed that management control of PIA is expected to shift by May 25, 2026, provided all Conditions Precedent outlined in the Share Purchase and Subscription Agreement (SPSA) signed on January 29, 2026, are fulfilled. The notice for exercising the call option was submitted along with the required standby letter of credit in line with the agreement.
The total private-sector investment in the PIA privatisation deal is estimated at around Rs180 billion. Out of this amount, at least Rs55 billion will be paid to the Government of Pakistan as divestment proceeds, while nearly Rs125 billion will be injected into the airline as fresh equity to support financial restructuring and recapitalisation.
Authorities said the fresh investment will help modernise the PIA fleet, improve operational systems, expand international and domestic routes, and enhance passenger services. Analysts believe the privatisation of PIA could reduce the financial burden on the government and improve the airline’s competitiveness in the global aviation market.
The consortium involved in the transaction includes Arif Habib Corporation Limited, Fatima Fertilizer Company Limited, Lake City Holdings, The City School, AKD Group Holdings, and Fauji Fertilizer Company Limited.
The Privatisation Commission, the Government of Pakistan, and the consortium are currently working together to complete all necessary requirements before the first closing of the transaction. The PIA privatisation process is being closely watched by investors and the business community as a major economic development in Pakistan.
