Fauji Fertilizer Company Limited has joined the Arif Habib Corporation-led consortium as a shareholder in PIA Equity Limited, the special purpose vehicle formed to acquire Pakistan International Airlines.
The consortium announced the development on Thursday.
PIA Equity Limited will own 100% of Pakistan International Airlines Corporation Limited once the transaction is completed.
Who are the new owners of PIA after privatization?
The Arif Habib-led consortium won the PIA auction with a bid of PKR 135 billion for a 75% stake.
Fauji Fertilizer Company holds the largest individual share at 33.9%, followed by Arif Habib Corporation, Fatima Fertilizer Company, Lake City Holdings, AKD Group and The City School Group. PIA Equity Limited serves as the unified holding vehicle for all consortium members.
The consortium later completed a full 100% takeover of PIA with an additional PKR 45 billion payment for the remaining 25% stake.
The privatization forms part of the Pakistan government's broader push to offload loss-making state-owned enterprises.
The Privatization Commission approved the transaction structure, with PIA Equity Limited acting as the central acquisition and management platform.
[What role will Fauji Fertilizer play in PIA's restructuring?
Fauji Fertilizer's entry into the consortium is intended to bring capital backing and management expertise to the struggling airline. The company initially withdrew before the formal bid submission in December 2025 but was later permitted to join the winning Arif Habib consortium. Its financial strength as a large listed company makes it a key pillar of the ownership structure.
Plans following the acquisition include adding 20 new aircraft to the PIA fleet, with support from Airbus and Boeing. The privatization agreement also includes provisions to manage the welfare and pensions of existing and retired employees. The consortium said it is working closely with the Privatization Commission to advance the transaction toward completion.
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