In a historic development, the Arif Habib Consortium has officially won the Pakistan International Airlines (PIA) privatization bid with an unprecedented Rs135 billion offer, marking one of Pakistan’s most significant privatization milestones.
This successful bid grants the consortium 75% ownership of PIA, with the option to acquire the remaining 25% shares within 90 days — signaling a bold new era for the national flag carrier.
A High-Stakes Privatization Battle
The PIA privatization open bidding turned into an intense showdown between key industry leaders. The Lucky Group shocked many with its Rs101.5 billion bid, while Airblue had previously submitted Rs26.5 billion.
However, the decisive moment came when the Arif Habib Consortium surged ahead with its final Rs135 billion bid, sealing victory and reshaping Pakistan’s aviation future.
Who Is Behind the Winning Consortium?
The powerful Arif Habib Consortium includes leading Pakistani corporate players:
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Arif Habib Limited
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Fatima Fertilizer
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The City School Group
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Lake City Holdings
Their combined financial strength and operational capacity played a critical role in securing Pakistan’s largest airline privatization deal.
Privatization Structure and Financial Framework
Under the privatization agreement:
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The winning consortium acquires 75% of PIA shares
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Only 7.5% of proceeds will go to the government
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The majority of funds will be reinvested into PIA modernization, fleet upgrades, operational improvements, and restructuring
This comes after the government cleaned PIA’s balance sheet, converting negative Rs45 billion equity into positive Rs30 billion, absorbing over Rs650 billion in debt and providing significant tax concessions and operational relief.
PIA Back to Profit After 21 Years
In a remarkable turnaround, PIA reported Rs26.2 billion net profit in FY2024, compared to a massive Rs75 billion loss in 2023. Analysts note the financial stabilization was largely driven by debt absorption and restructuring, although PIA’s operational profit margin exceeding 12% now aligns with leading global airlines.
Fleet, Workforce & Assets – What Changes?
PIA currently operates:
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38 aircraft, with 18 active
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Landing rights in 78 international destinations, including London, Paris, and Canada
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Workforce reduced to around 6,500 employees
Job protection is guaranteed for one year post-privatisation, while voluntary separation is expected later. Non-core assets like PIA-owned hotels in New York and Paris are excluded from the privatization deal.
Why This Privatization Matters
Experts say the PIA privatization deal will:
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End years of financial losses
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Reduce burden on taxpayers
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Improve aviation standards in Pakistan
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Transform PIA into a commercially competitive, profit-making airline
Global outlets, including Bloomberg, have highlighted this as a historic economic turning point for Pakistan, marking PIA’s return to profitability after more than two decades.
