FFC approved to join consortium acquiring stake in PIA
Approval advances deal led by Arif Habib Corporation for majority ownership of the national carrier
Haris Zamir
Business Editor
Experience of almost 33 years where started the journey of financial journalism from Business Recorder in 1992. From 2006 onwards attached with Television Media worked at Sun Tv, Dawn Tv, Geo Tv and Dunya Tv. During the period also worked as a stringer for Bloomberg for seven years and Dow Jones for five years. Also wrote articles for several highly acclaimed periodicals like the Newsline, Pakistan Gulf Economist and Money Matters (The News publications)
Pakistan’s Privatization Commission on Tuesday approved the inclusion of Fauji Fertilizer Company Limited in the consortium that won a majority stake in Pakistan International Airlines, marking a key step forward in the country’s most significant privatization in nearly two decades.
The commission endorsed FFC’s nomination to join the group led by Arif Habib Corporation Limited, which submitted the highest bid in December for a 75% stake in the national carrier.
“The PC Board, after due scrutiny and review, endorsed the nomination and confirmed that FFC fulfills the applicable eligibility and regulatory requirements,” the Ministry of Privatization said in a statement.
The decision, taken at a meeting chaired by Privatization Adviser Muhammad Ali, will be forwarded to the Cabinet Committee on Privatization and the federal cabinet for final approval.
The Arif Habib Corporation-led consortium bid PKR 135 billion (about $480 million) for the airline, outpacing a rival offer from a group led by Lucky Cement in a competitive process broadcast live on television. The consortium may nominate up to two additional members under the transaction structure.
Other members of the consortium include Fatima Fertilizer, AKD Group, The City School and Lake City Holdings. Arif Habib Corporation remains the lead and majority stakeholder.
The privatization of PIA is part of Pakistan’s broader reform agenda under a $7 billion Extended Fund Facility approved in September 2024 by the International Monetary Fund. The program requires restructuring and divestment of loss-making state-owned enterprises.
PIA has accumulated heavy losses over the years, becoming a financial burden on the national exchequer. In an effort to make the airline more attractive to investors, the government assumed most of its legacy debt.
The carrier recently posted its first pre-tax profit in two decades, aided by the lifting of a five-year operational ban by Britain and the European Union that had barred it from key international routes.
A previous attempt to privatize the airline in 2024 drew only a single $36 million bid from a real estate developer, far below the government’s minimum price of $305 million for a 60% stake, underscoring the challenges facing the long-delayed reform effort.
If completed, the sale would represent Pakistan’s first major privatization in nearly 20 years and a milestone in its push to overhaul struggling state-owned enterprises.
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