Islamabad: The Arif Habib Group has officially acquired a 75 percent stake in Pakistan International Airlines (PIA), moving forward with the long-delayed privatisation of the national carrier. The remaining 25 percent of shares must be acquired by the winning bidder within 90 days, according to the privatisation terms.
Arif Habib pledges PIA revival
The Arif Habib Group said that the privatisation of Pakistan International Airlines (PIA) has been completed transparently and will usher in a new era of investment and service improvements. The group promised that fresh capital will enhance PIA’s operations, improve passenger services and restore the airline’s long-standing reputation.
Arif Habib emphasised that the transparent privatisation process will boost investor confidence and attract additional foreign investment, while also generating new employment opportunities across the aviation sector. “Today, Pakistan has achieved a victory,” he said, adding that PIA’s good days are set to return and that the airline will regain the trust of both customers and investors.
The group also highlighted that the investment will open new pathways for growth, strengthen the national carrier’s financial stability and ensure that passengers experience higher-quality services in the coming years.
Proceeds to largely reinvest in airline
92.5 percent of proceeds from the stake sale will be reinvested into PIA, while the remaining 7.5 percent will go to the federal government. The reinvestment aims to stabilise operations, modernise the fleet and restore financial sustainability.
Job security and benefits assured
The government has guaranteed one-year job security for all PIA employees following the privatisation. Pension and post-retirement benefits will now fall under the responsibility of the new holding company, ensuring continuity of employee welfare.
Fleet expansion and branding remain
Under the proposed business plan, PIA plans to expand its operational fleet from 18 to 38 aircraft over the next four years. The airline’s name and branding will remain unchanged, preserving its identity in the domestic and international aviation markets.
Privatisation excludes PIA properties
However, PIA’s domestic and international properties are not included in the privatisation deal. These assets have been transferred to the PIA Holdings Company. The privatisation covers only the airline’s four main offices in Islamabad, Karachi, Peshawar, and Rawalpindi.
The government and the Arif Habib Group said the acquisition marks a critical step in reviving PIA, attracting private investment and enhancing the carrier’s operational efficiency after years of financial challenges.
