ISLAMABAD: In a significant move bringing relief to Pakistan International Airlines (PIA) employees, prominent businessman and investor Arif Habib, who recently acquired the airline, has assured that no staff member will face termination for at least a year.
During an interview, Habib attributed the national carrier’s persistent financial struggles to escalating debt and high-interest liabilities. He highlighted that PIA’s debt had once peaked at nearly Rs 800 billion, growing unabated under government-backed guarantees.
Habib elaborated on the failure of previous privatisation attempts, attributing them to poor management and unfavourable economic conditions. However, the recent success of the privatisation drive was supported by stabilising economic indicators such as reduced interest rates, a more stable rupee, and improved control over oil prices. Coupled with a revamped management system, these elements contributed to the deal’s success.
Currently, out of PIA’s 34 aircraft, only 17 are operational. Habib shared plans to expand the fleet to 38 aircraft in the future. He also mentioned that most of the airline’s assets have been transferred to a holding company, with the airline’s current financial deficit slated to be managed for the next year.
The new owner firmly pledged against any layoffs during this period, underlining that diligent and skilled employees would instead be promoted on merit. He pointed out that the turnaround strategy includes significant enhancements to the airline’s cargo operations as a key revenue growth driver.
Habib also detailed the ownership structure of PIA, explaining that 25 percent of the shares are evenly held by Fauji Fertilizer, Arif Habib Group, and Fatima Fertilizer, while another 25 percent is distributed among other consortium members. He hinted at the possibility of including an additional strategic partner in the future.
While explaining budgetary commitments, he noted that although PIA could potentially have been managed with Rs 70 billion, an allocation of Rs 125 billion has been made to ensure sustainability and development. These funds will be used for new engines, debt clearance, and operational costs.
Prioritising passenger safety, Habib emphasized there would be zero tolerance for compromises on flight safety under the restructured administration. Confident in the reforms being implemented, he expressed his belief that PIA could transition into a profitable entity within a year.
On the financial front, he disclosed PIA’s current liabilities stand at Rs 181 billion. Looking beyond aviation reforms, Habib suggested that developing opportunities within the blue economy could emerge as a key area for investment in the coming future.
Lamenting the mismanagement of state-owned enterprises, he criticized the prevailing culture where officials often prioritize personal interests over institutional welfare. He advocated for a limited government role focused on policymaking, leaving business operations in the hands of the private sector for better efficiency and accountability.
