By Staff Reporter’
ISLAMABAD: The new owners of Pakistan International Airlines vowed on Thursday to expand the carrier’s fleet and revamp its services as they signed a deal to take control of the loss-making airline, marking the conclusion of a long-delayed privatisation process aimed at easing the government’s fiscal burden.
A consortium led by the Arif Habib Group clinched a 75 percent stake in PIA last month with a bid of Rs135 billion, valuing the airline at Rs180 billion. The group has also opted to acquire the remaining 25 percent stake, bringing the total investment to Rs180 billion, of which Rs125 billion will go toward PIA’s operations and Rs55 billion to the government.
The transaction documents were signed during a televised ceremony in Islamabad attended by Prime Minister Shehbaz Sharif, senior cabinet members and Chief of Army Staff General Asim Munir. “The money that will go into the airline will improve its services, new planes will be bought and you will see a big difference very soon,” Arif Habib, chairman of the consortium, told the gathering. He added that the group had held extensive talks with U.S. aerospace manufacturer Boeing and planned to meet with European rival Airbus on Friday, while exploring other options to bolster the fleet. Habib stressed that government support would be critical to meeting performance expectations, assuring Sharif that the consortium would deliver on pledges to enhance the airline’s operations.
Sharif congratulated the nation on the deal’s completion, expressing hope that Habib and his team would improve PIA’s punctuality, cabin service and ground handling. “I want to congratulate the entire nation from the bottom of my heart on the completion of PIA’s privatisation,” Sharif said, recalling the carrier’s heyday in the 1960s and voicing confidence it could regain its former stature.
The prime minister praised Habib and his consortium as “committed business ambassadors of Pakistan,” noting their prominent role in the country’s industrial growth. He emphasised that passenger comfort, safety and respect would be the new owners’ top priorities.
Adviser to the Prime Minister on Privatisation Muhammad Ali described the deal as one of the government’s most significant milestones, completed efficiently and transparently after a competitive bidding process. “Had it not been for their guidance and engagement, we would not be here today,” Ali said, thanking Sharif and Munir for their support. He detailed that the 180 billion rupee investment, equivalent to about $650 million, represented the largest transaction in Pakistan’s privatisation history. The funds would fuel fleet expansion, service upgrades and a return to private-sector management to restore PIA to its “glory days.”
Ali added that the sale demonstrated Pakistan’s aggressive push to divest loss-making state enterprises, signaling to investors that the country was open for business and capable of handling complex deals. He highlighted local entrepreneurs’ willingness to tackle major investments as a sign of positive business sentiment.
Once a leading Asian airline, PIA has grappled with chronic mismanagement, political interference, overstaffing and mounting debt exceeding $2.8 billion in accumulated losses. Operational woes culminated in a 2020 flight ban to the European Union, Britain and the United States following a pilot licensing scandal, though the EU and UK later lifted their restrictions, offering a boost to recovery efforts. The privatisation, which began a month ago after previous failed attempts to reform the carrier, underscores Islamabad’s broader drive to offload unprofitable assets amid economic pressures.
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