Islamabad, Feb 16 (.) Pakistan’s national flag carrier, Pakistan International Airlines (PIA), is set for full privatisation as the Arif Habib Group-led consortium moves to acquire the airline’s remaining 25 percent stake,The News International reported.
The move will grant the consortium complete ownership of the carrier, marking one of the most significant privatisation deals involving a state-owned entity in Pakistan’s recent history,The News International reported.
Shahid Ali Habib, Chief Executive Officer of Arif Habib Limited, confirmed that the consortium has decided to purchase the outstanding shares.
He stated that a formal decision is expected in April, with the payment process to be completed within a 12-month timeframe in line with the agreed structure, paving the way for PIA’s full transition into private ownership.
The consortium previously acquired a 75 percent stake in PIA in December for PKR 135 billion (approximately USD 485 million), marking a major milestone in the government’s effort to privatise the airline, which has become loss-making amid dwindling funds and a largely inoperational fleet, the Dawn reported.
The remaining 25 percent stake is valued at roughly PKR 45 billion (around $160 million), bringing the total transaction size to about PKR 180 billion (approximately $645 million) once completed.
Under the terms finalised earlier this year, the government granted the consortium a 90-day window to exercise its option to purchase the remaining shares, with the deadline set for the end of April.
The agreement allows a 12-month period for the transfer of funds, a structure designed to ease financial pressure on the buyers while ensuring a clear transition timeline,The News International reported.
With full acquisition of the airline, PIA will operate entirely as a private entity, and as such will no longer have government-nominated board members once the transaction is finalised, according to Habib, marking a structural shift in governance and management. The change is expected to give the new owners greater operational flexibility and autonomy in implementing reforms.
Islamabad decided to privatise its once-celebrated national airline due to years of mounting financial losses, operational inefficiencies, and a growing debt burden. The airline has long struggled with a bloated workforce, an ageing aircraft fleet, limited route profitability, and governance challenges. Public funds were repeatedly used to keep the carrier afloat, adding pressure to Pakistan’s already strained fiscal position.
Officials argue that transferring control to the private sector will enable a comprehensive turnaround strategy. According to Shahid Ali Habib, the improvement plan includes upgrading staff performance standards, modernising ticketing and reservation systems, strengthening safety and security compliance, and increasing flight frequency on commercially viable routes.
Privatisation will also involve fleet expansion, renewal, and modernisation, all central to the restructuring effort. A modernised fleet could reduce fuel and maintenance costs while improving passenger comfort and reliability, two factors that have historically affected PIA’s competitiveness against regional and international carriers.
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