Arif Habib-led consortium files notice of intent to acquire remaining 25% PIACL stake

The Privatization Commission of Pakistan has received a notice of intent from a consortium led by Arif Habib Corporation Limited (AHCL) to acquire the government's remaining 25% equity stake in Pakistan International Airlines Corporation Limited (PIACL).

The move positions the consortium to take full ownership of the national flag carrier.

What does the Arif Habib Consortium's notice of intent mean for PIA privatization?

The notice signals the consortium's intention to exercise a call option for the remaining 25% stake in PIACL, backed by a standby letter of credit. If the acquisition completes as planned, 100% of the airline will move into private hands.

Management control is expected to transfer on or before May 25, 2026, the First Closing Date set by the Privatization Commission.

What are the terms of the PIACL acquisition deal?

The transfer is subject to conditions precedent outlined in the Share Purchase and Subscription Agreement (SPSA), signed on January 29, 2026. The notice of intent is accompanied by a standby letter of credit, to be exercised in accordance with the SPSA's terms. Total private-sector investment in the transaction is expected to reach approximately PKR 180 billion.

This figure comprises a minimum of PKR 55 billion payable to the government of Pakistan as divestment proceeds. A further PKR 125 billion in fresh equity is earmarked to support the airline's recapitalization. The earlier 75% stake acquisition by the consortium was valued at PKR 135 billion.

How will the investment be used to modernize Pakistan International Airlines?

Officials said the planned equity injection is intended to support fleet expansion and modernization, route development, and improvements in customer service and operational systems. The consortium has targeted expanding the fleet to 50 aircraft by September 2026. Pakistan International Airlines has long served as the country's flag carrier, operating domestic and international routes.

Who are the members of the Arif Habib Consortium acquiring PIACL?

The consortium acquiring the remaining PIACL stake includes Arif Habib Corporation Limited, Fatima Fertilizer Company Limited, Lake City Holdings (Pvt) Limited, The City School (Pvt) Limited, AKD Group Holdings (Pvt) Limited, and Fauji Fertilizer Company Limited. The Competition Commission of Pakistan has already cleared the group's earlier acquisition of a 75% stake through its special purpose vehicle, PIA Equity Limited.

The Privatization Commission, the consortium, the government of Pakistan, and PIACL are working jointly to fulfil the remaining conditions precedent ahead of the First Closing.