Arif Habib Consortium assumes control of PIA after privatisation

Foreign Minister Dar described the privatisation as a “complex transaction” completed through hard work and coordination across government institutions.

Pakistan International Airlines (PIA) officially transitioned to new management under PIA Equity Ltd, a special purpose vehicle of the Arif Habib Consortium, as the government completed the privatisation process on Monday.

Prime Minister Shehbaz Sharif, Deputy Prime Minister and Foreign Minister Ishaq Dar, and Chief of Defence Forces and Chief of the Army Staff Field Marshal Asim Munir attended the ceremony marking the handover.

PIA announced that the transition represented “a bold new chapter of modernisation and global excellence” for the national carrier. The airline confirmed a Rs125 billion equity injection that fully capitalised the company, enabling it to modernise operations, improve service standards and preserve its legacy.

The chairman of PIA Equity Ltd said, “Trust is earned mile by mile, smile by smile, year by year. We know this, and we accept the challenge wholeheartedly.”

The Ministry of Privatisation stated that the Privatisation Commission had completed the first financial close of PIA’s privatisation, describing it as the country’s largest transaction of its kind. The ministry said the deal reflected Pakistan’s commitment to transparent and competitive processes.

The transaction involves Rs180 billion in total investment commitments, including Rs125 billion in fresh capital for PIA and Rs55 billion payable to the government.

Prime Minister Shehbaz congratulated all parties involved, calling the deal “an important milestone” in Pakistan’s economic reform journey. He said the investment would modernise and strengthen PIA, laying the foundation for its revival while reinforcing investor confidence.

Foreign Minister Dar described the privatisation as a “complex transaction” completed through hard work and coordination across government institutions. He said the process demonstrated the government’s commitment to transparent governance and economic reforms.

In December 2025, the government sold its 75 percent stake in PIA for Rs10.1 billion cash to the consortium, marking the first major privatisation in two decades. The consortium, comprising Arif Habib, Fawad Ahmed Mukhtar, Gohar Ejaz and Aqeel Karim Dhedhi, placed the highest bid of Rs135 billion in the 13th round of auction, defeating a rival group led by Muhammad Ali Tabba.

The government had previously attempted to sell PIA but failed. To ensure success in the second attempt, authorities waived 18 percent sales tax on aircraft leases, granted Rs36 billion in tax credits to bidders and extended the timeframe for clearing liabilities exceeding Rs33 billion owed to the Federal Board of Revenue and Civil Aviation Authority.

The privatisation marks the first successful transaction since 2005, when the government sold K Electric. Officials said the deal would transform PIA into a modern airline while reducing the financial burden on the state.