The privatisation process of Pakistan International Airlines (PIA) has entered a new phase as a consortium led by Arif Habib Corporation has expressed its intent to acquire the remaining 25% government stake in the national flag carrier.
According to the Privatisation Commission, the total investment in the deal is expected to reach around Rs180 billion. This includes Rs55 billion to be paid to the government for divestment and an additional Rs125 billion planned as fresh equity to strengthen the airline’s financial position.
Officials said the proposed capital injection will be used to support fleet modernisation, route expansion, and improvements in operational efficiency and passenger services.
The transfer of management control is expected to be completed by May 25, subject to fulfilment of conditions outlined in the share purchase agreement signed earlier this year.
The consortium, which already holds a 75% stake acquired in December 2025, includes several major corporate entities such as Arif Habib Corporation, Fatima Fertiliser, Lake City Holdings, The City School, AKD Group, and Fauji Fertiliser Company.
The latest step, backed by financial guarantees and a notice of intent, marks a significant move toward full private-sector ownership of Pakistan’s national airline.
Earlier, The government has approved Rs4.4 billion to clear pension and medical dues of retired employees of Pakistan International Airlines. The decision was taken in a meeting of the Economic Coordination Committee (ECC) chaired by Finance Minister Muhammad Aurangzeb.
The funds will be used to settle long-pending liabilities of retired PIA staff. The approval comes even after the partial privatisation of the national airline. Officials said the payment includes medical bills and pension obligations.
Additional allocations were also approved for salary payments of employees linked to aviation and defence-related units separated from the airline structure.
