KARACHI: A consortium led by prominent Pakistani investor Arif Habib has formally established PIA Equity Ltd (PIAEL) to complete the acquisition of the national flag carrier, Pakistan International Airlines (PIA), marking a significant step in the country’s ongoing privatization drive.
According to details, the consortium has already secured a 75% stake in PIA for Rs135 billion, while the remaining 25% stake is expected to be acquired for an additional Rs45 billion. To facilitate the transaction, the group has submitted a bank guarantee along with a standby letter of credit to the Privatisation Commission of Pakistan, ensuring financial closure for the remaining shares.
PIAEL comprises a group of leading corporate investors, including Fatima Fertiliser, AKD Group, Lake City Holdings, The City School Group, and Fauji Fertiliser Company.
Sources indicate that full private ownership of PIA is expected to be achieved within the next 12 months, subject to regulatory approvals and completion of all financial obligations. However, concerns among employees regarding job security, benefits, and organizational restructuring continue to persist, highlighting the challenges ahead in transitioning the airline to private management.
The development represents a major milestone in Pakistan’s efforts to reform loss-making state-owned enterprises and attract private sector investment into key industries.
