PIA set to be run by Arif Habib-led consortium from April 2026

Pakistan International Airlines (PIA) is expected to come under the operational control of a new private owner by April 2026 after a consortium led by Arif Habib Corporation emerged as the highest bidder for a majority stake in the national carrier, officials said on Wednesday.

The Arif Habib-led consortium secured a 75% stake in PIA by offering Rs135 billion during a live-televised auction held on Tuesday, exceeding the government’s reserve price of Rs100 billion.

The successful bid marked a breakthrough in the government’s long-running efforts to privatise the loss-making airline after a previous attempt failed last year.

Adviser to the Prime Minister on Privatisation, Muhammad Ali, told Reuters that the process has now moved to the approval stage, with the Privatisation Commission board and the federal cabinet expected to grant final clearances within days. A formal contract signing is anticipated within two weeks, followed by financial close after about 90 days, subject to regulatory and legal requirements.

Under the deal, the government will receive around Rs10 billion in upfront cash while retaining a 25% shareholding in the airline, valued at approximately Rs45 billion. Ali said the transaction was structured to ensure fresh capital injection into PIA rather than a simple transfer of ownership.

The consortium includes fertiliser manufacturer Fatima, private education network City School, and real estate firm Lake City Holdings Limited. Ali said the buyer may add up to two additional partners, including a foreign airline, provided they meet qualifying criteria. He added that Fauji Fertiliser Company did not submit a bid but could still join the consortium later.