Arif Habib joint venture plans to expand PIA’s fleet to 64 aircraft after Rs 135 billion takeover

• Habib confirms that Fauji Fertilizer has also joined the joint venture.
• Adding the remaining 25% stake will bring Rs 45 billion to the fund.
• The government expects to have an airline operating under a new owner by April 2026.

Arif Habib, founder of one of Pakistan’s leading business conglomerates, said on Wednesday his joint venture plans to expand the fleet of Pakistan International Airlines (PIA) to 64 aircraft in phases after acquiring a majority stake under the government’s privatization process.

The Arif Habib Corporation Limited-led consortium acquired 75% stake in PIA with the highest bid of Rs 135 billion in an auction held for the national carrier’s privatization process on Tuesday.

During the open bidding round, Arif Habib raised his bid from Rs115 billion to Rs135 billion after the Lucky Cement Limited-led consortium raised its earlier bid of Rs101.5 billion to Rs134 billion in the second round of open bidding.

“We have 90 days and we also intend to buy the remaining 25%,” Habib told a private news channel, adding that the group is interested in acquiring 100% ownership of the national airline.

Habib said the government will receive revenue worth Rs 10 billion against the sale of 75% of the shares, while the remaining 25% of the shares will go up to Rs 45 billion.

He also confirmed that Fauji Fertilizer Company Limited had also joined his joint venture under the leadership of the business group.

Outlining the operational plans, Habib said the number of aircraft would be increased to 38 in the first phase and 64 in the second phase.

He also stated that the national airline had liabilities of 190 billion rupiah while its assets were valued at about 180 billion rupiah.

said Adviser to the Prime Minister on Privatization Muhammad Ali Reuters that the state expects a new owner to run the airline by April, subject to approvals.

The process is now moving to final approvals from the Privatization Commission board and cabinet, expected within days, with contract signing likely within two weeks and financial close after 90 days to meet regulatory and legal requirements.

The deal was structured to inject new capital into the airline rather than simply transfer ownership, he said. “We didn’t want a situation where the government sells the airline, takes its money and the company still collapses,” Ali said.

Ali said safeguards, including withholding and an additional payment at signing, would allow the government to move on to the second bidder if the deal fails to close.

On labor, the prime minister’s aide said the buyer must retain all workers for 12 months after the transaction, with contracts unchanged, adding that PIA’s workforce has already shrunk in recent years.

The sale is being closely watched by the International Monetary Fund (IMF), which has pressed Pakistan to stop losses on state-owned enterprises.

Ali said privatization was a key test of the credibility of Pakistan’s reform with the IMF, adding that failure to offload loss-making state-owned companies risked renewed pressure on public finances.

He said closing the deal would signal momentum for reforms and privatisation, adding that the government was working through a pipeline of future deals once PIA was closed.

Additional information from Reuters