Milestone for Economic Reforms
Prime Minister Shehbaz Sharif congratulated everyone involved in completing the transaction, describing it as another significant step in Pakistan’s broader economic reform agenda.
He said the transfer of management control, combined with substantial new investment, provides an opportunity to rebuild PIA into a financially stable and internationally competitive airline while sending a positive signal to both local and foreign investors.
Deputy Prime Minister Ishaq Dar also praised the successful completion of the complex transaction, saying it was made possible through close coordination among government institutions, professional execution, and a commitment to transparency and good governance.
Background of the PIA Privatisation Deal
The government finalized the sale of 75 percent ownership in PIA to the Arif Habib-led consortium in December 2025, ending one of Pakistan’s longest-running privatisation efforts.
The consortium, comprising prominent businessmen Arif Habib, Fawad Ahmed Mukhtar, Gohar Ejaz, and Aqeel Karim Dhedhi, secured the winning bid during the 13th round of the open auction by offering Rs135 billion, outperforming the competing consortium led by Muhammad Ali Tabba.
This marked Pakistan’s first successful major privatisation since the sale of K-Electric in 2005 and followed an earlier unsuccessful attempt to privatise the national airline.
Competitive Bidding Led to Successful Sale
The auction remained highly competitive throughout multiple bidding rounds. The Arif Habib Consortium consistently increased its offers, while the rival group adopted a more cautious strategy by making smaller incremental bids.
After eight rounds, the competing consortium requested additional time for internal consultations before ultimately conceding the contest when the Arif Habib Consortium raised its final offer to Rs135 billion.
To facilitate the successful completion of the privatisation, the government introduced several incentives, including the removal of an 18 percent sales tax on aircraft leases, tax credits worth Rs36 billion, and additional time for settling more than Rs33 billion in outstanding liabilities owed to the Federal Board of Revenue (FBR) and the Civil Aviation Authority (CAA).
What Lies Ahead for PIA?
With the transfer of management now complete, the new owners are expected to focus on improving operational efficiency, enhancing customer satisfaction, expanding international operations, and strengthening PIA’s financial position. The coming years will determine whether this historic privatisation can restore the national airline to sustainable profitability and rebuild public trust in one of Pakistan’s most recognized brands.
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Arif Habib Consortium takes over PIA management as govt formally completes privatisation process
