Arif Habib-led consortium to acquire remaining 25% share in PIA

The Arif Habib Group-led consortium has announced plans to acquire the government’s remaining 25% stake in Pakistan International Airlines, a move that would give the private investors full control of the national carrier.

The government has allowed a 90-day window for the purchase of the remaining shares, valued at about PKR 45 billion, 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.

The consortium already acquired a 75% stake in PIA for PKR 135 billion in December last year and has pledged to restructure operations, expand the fleet, and improve service quality. Full ownership is intended to remove government influence from decision making and accelerate the turnaround strategy.

Shahid Ali Habib, chief executive of Arif Habib Ltd, said the change of sponsors is expected in late April or early May, enabling the airline to operate as a private entity without government appointed board members.

Management changes are planned by the end of April.

The investor group comprises Arif Habib Corporation & Fatima Fertilizer (34.1%), Fauji Fertilizer (33.9%) Lake City (16 %), and a combined 16% stake held by the City School and AKD Group.

The new owners have committed PKR 125 billion to support the revival plan, while the board is mandated to raise additional capital for rebranding.

PIA was established in 1955 and converted into a public limited company in 2016 under the Pakistan International Airlines Conversion Act.

Following approval from the Securities and Exchange Commission of Pakistan in May 2024, the airline was delisted from the stock exchange and transferred to PIA Holding Company Ltd, created in March last year.