PIA Set for New Ownership as Privatisation Breakthrough Nears

Pakistan International Airlines (PIA) is expected to come under new private ownership from April next year, subject to regulatory approvals, marking a major breakthrough in the long-delayed privatisation of the national flag carrier. Adviser to the Prime Minister on Privatisation Muhammad Ali confirmed that a consortium led by Arif Habib Corporation emerged as the top bidder in a live auction, offering Rs135 billion for a 75 per cent stake, well above the government’s reserve price of Rs100 billion. The successful bid follows last year’s failed attempt to privatise the airline. Ali said the deal is structured to inject fresh capital into PIA, rather than merely transferring ownership. Under the arrangement, the government will receive Rs10 billion in upfront cash, while retaining a 25 per cent stake valued at around Rs45 billion, bringing the total value received to Rs55 billion. He said final approvals from the Privatisation Commission and the federal cabinet are expected soon, with contract signing likely within weeks and financial close after a 90-day regulatory period. The winning consortium includes Fatima Fertiliser, City Schools, and Lake City Holdings, with scope to add further partners, including a foreign airline. The privatisation is closely watched by the IMF, as Pakistan seeks to curb losses at state-owned enterprises. Officials say the move will revive PIA, expand its fleet, improve services, and ease pressure on public finances.