KARACHI: In the ongoing process of privatizing Pakistan International Airlines (PIA), the Arif Habib Consortium has announced that Fauji Fertilizer Company will join as a strategic partner in the project.
Representatives from the Arif Habib Group expressed enthusiasm about Fauji Fertilizer’s involvement, highlighting the potential benefits it could bring to PIA’s revitalization efforts.The consortium has outlined plans to invest approximately Rs125 billion in PIA over the next year. The investment aims to overhaul the airline’s operations, including expanding its fleet from 18 aircraft to 62, and modernizing its infrastructure. Additionally, Arif Habib officials emphasized their commitment to providing better support and opportunities for PIA employees, alongside improving passenger services.
“Enhancing the passenger experience and creating a robust operational foundation for our employees will be at the forefront of our efforts,” stated the Arif Habib Group. The partnership is expected to play a crucial role in accelerating PIA’s restructuring process and restoring its status as Pakistan’s premier airline.
The Arif Habib Consortium has successfully acquired a majority stake in PIA, winning the privatization auction with a bid of Rs135 billion. The deal involves the purchase of 75% of the airline’s shares, outbidding the closest competitor, the Lucky Consortium, which bid Rs134 billion.
As part of the agreement, the government will receive an immediate cash payment of Rs10.2 billion. This privatization marks Pakistan’s first major large-scale sale of a state-owned enterprise in over twenty years and is projected to save taxpayers approximately Rs35 billion annually in subsidies and operational costs.
This move is a key element of the government’s broader economic reform strategy aimed at restructuring loss-making government entities and enhancing operational efficiency. Experts view the privatization as a positive indicator of increased confidence in Pakistan’s investment environment.
Last year, an initial attempt to privatize PIA set a minimum price of $305 million for a 60% stake, but only one bid was received, from Blue World City, offering just $36 million. The bid was later withdrawn due to financial issues and operational difficulties faced by the airline.
With the auction now concluded, the Arif Habib Group is positioned to lead PIA’s transformation, marking a pivotal moment in Pakistan’s privatization efforts and offering renewed optimism for the national airline’s future.
