Consortium Plans Full Privatization of Pakistan International Airlines
Karachi: The Arif Habib Group consortium has announced its intention to acquire the remaining 25 percent government stake in Pakistan International Airlines, a move that would transfer full ownership and control of the national carrier to the private sector.
Chief Executive Officer of Arif Habib Limited, Shahid Ali Habib, said that once 100 percent of PIA’s shares are acquired, the airline will be able to operate entirely as a private entity.
Speaking to the Media , he said the consortium has decided to purchase the remaining 25 percent stake. He added that a final decision is expected in April, followed by payment over the next 12 months. He said full privatization would place complete control of the airline in private hands and free it from government-nominated board members.
It may be recalled that in December last year, the Arif Habib consortium acquired a 75 percent stake in PIA for Rs135 billion. The government’s privatization initiative aimed to turn the loss-making airline profitable through operational restructuring, fleet expansion, and improved passenger services.
Following the privatization of 75 percent shares in December, the government granted the consortium a 90-day window to purchase the remaining shares, valued at around Rs45 billion, with the deadline set for the end of April. Under an agreement finalized in January, a 12-month period was allowed for the transfer of funds, making the transaction feasible.
The successful consortium includes Fatima Fertilizer with a 34.1 percent share, Fauji Fertilizer Company with 33.9 percent, Lake City with 16 percent, and The City School along with the AKD Group holding 16 percent.
Shahid Ali said the PIA turnaround plan includes service improvements such as better staffing and ticketing systems, along with enhanced safety and security measures.
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