ISLAMABAD:* The consortium led by the Arif Habib Group has announced plans to acquire the remaining 25 per cent government stake in Pakistan International Airlines (PIA), aiming to secure complete ownership of the national flag carrier.
In December 2025, the group purchased a 75 per cent stake in PIA for Rs135 billion, with a commitment to turn around the loss-making airline through operational restructuring, fleet modernisation, and enhanced customer services. The acquisition of the remaining shares, valued at approximately Rs45 billion, will enable the consortium to implement its revival strategy without government interference in management decisions.
Shahid Ali Habib, CEO of Arif Habib Limited, confirmed that the change of sponsors is expected by late April or early May. “This will allow us to operate as a fully private entity, free from government-appointed board members,” he said.
The government has granted a 90-day window for the purchase of the remaining stake, with the deadline set for the end of April. Under the agreement signed in January, the consortium has a 12-month period to complete the fund transfer, making the transaction financially feasible.
The winning consortium comprises Fatima Fertilizer (34.1pc), Fauji Fertilizer Company (33.9pc), Lake City Holdings (16pc), and the City School in partnership with AKD Group (16pc). Backed by Rs125 billion in financial support, the new management plans to raise additional capital and reposition the airline through comprehensive reforms and rebranding initiatives.
Established in 1955, PIA became a public limited company in 2016 under the Pakistan International Airlines (Conversion) Act. Following approval from the Securities and Exchange Commission of Pakistan (SECP) in May 2024, the airline was delisted from the stock exchange and converted into a wholly owned subsidiary of PIA Holding Company Limited, created in March 2024 to oversee its privatisation process.
With full control in sight, the consortium is set to begin a new chapter for the airline, focusing on financial stability, operational efficiency, and restoring public confidence in the country’s flagship carrier.
Story by Kalbe Ali
