Pakistan’s PIA enters private ownership after $645 million takeover deal
Arif Habib-led consortium takes control with plans for fleet renewal and expansion
Dubai: Pakistan International Airlines (PIA) has officially moved under new private ownership, marking a major change for the country’s flag carrier. The airline will now begin a restructuring programme focused on fleet renewal, route expansion and operational improvements.
The transition took place after PIA Equity Ltd, a special-purpose vehicle of the Arif Habib Consortium, completed the takeover of the airline following the receipt of local and international regulatory approvals.
The new ownership structure is the result of Pakistan’s privatisation process, which was launched to bring private-sector investment into the loss-making national carrier and support its long-term transformation.
PIA Equity Ltd has taken full ownership of the airline through a transaction valued at approximately Rs180 billion (Dh2.4 billion). The consortium includes Arif Habib Group, Fatima Fertiliser Company, Fauji Fertiliser Company, Lake City Holdings, The City School and AKD Group Holdings.
As part of the deal, Rs55 billion will go towards government proceeds, while Rs125 billion will be injected directly into PIA as fresh equity to support operational restructuring, fleet renewal, route expansion and improvements to passenger services.
Privatisation follows competitive bidding process
The takeover follows a closely contested bidding process in which the Arif Habib-led consortium emerged as the highest bidder for PIA.
The consortium submitted a final bid of Rs135 billion (Dh1.8 billion), narrowly ahead of the Lucky Group consortium, which placed a bid of Rs134 billion. The government had set a reserve price of Rs100 billion (Dh1.3 billion) for the airline.
Other groups that participated in the process included consortia involving Arif Habib, Fatima Fertilizer, The City School and Lake City Holdings, as well as private airline Airblue and the Lucky Group consortium.
The privatisation is the government’s second attempt to sell PIA after an earlier effort failed to meet pricing expectations. Since then, authorities restructured the airline’s liabilities, introduced tax exemptions on aircraft leasing and provided regulatory measures to attract investors.
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New owners focused on rebuilding airline
Speaking after the takeover, the new ownership said in a statement that its relationship with passengers would remain central under the new structure.
“As the new ownership officially takes over today, we deeply understand that the trust of a nation isn’t simply transferred on a document. Trust is earned—mile by mile, smile by smile, year by year,” the statement read.
It added: “PIA will continue to honour its deep-rooted heritage while building a premium, modern aviation experience.”
The new management said the airline is now prepared to focus on improving operations and competing with international carriers, following the transfer of operating rights and restructuring of legacy liabilities.
According to the ch-aviation database, as of December 2025, Pakistan International Airlines is operating a fleet of 19 active aircraft. This figure includes 11 A320s, two ATR42-500 turboprops and six B777s, in different versions.
