Arif Habib Consortium Secures 100% Control of PIA with Rs 45 Billion Final Payment

In a historic shift for Pakistan’s aviation sector, the Arif Habib Consortium has officially secured full ownership of Pakistan International Airlines (PIA). By depositing the final Rs 45 billion today, the group met the April 28 deadline to acquire the remaining 25% state-owned shares, transitioning the national carrier entirely into private hands.

Financial Closure: From 75% to Full Ownership

The road to this takeover began on December 23, 2025, when the consortium placed a winning bid of Rs 135 billion for a 75% stake. Today’s payment of Rs 45 billion completes the transaction, supported by a standby letter of credit and a bank guarantee submitted to the Privatization Commission. Arif Habib confirmed the group is “fully prepared” to assume operational control by late May 2026.

Strategic Partners and Government Support

The powerhouse consortium now includes:

• Arif Habib Corporation & Fatima Fertilizer
• Fauji Fertilizer Company (FFC) (which recently joined to back the final 25% acquisition)
• AKD Group, Lake City Holdings, and The City School

To ensure a “clean” transition, the federal government recently approved Rs 5.98 billion to settle outstanding retirement dues and salaries for PIA employees. This move, paired with the Board of Directors’ recent approval of improved financial results, clears the path for the new management.

The Final Hurdle: FBR Clearances

Despite the financial readiness, one technical bottleneck remains. Arif Habib has urged the Privatization Commission to fast-track the No Objection Certificate (NOC) from the Federal Board of Revenue (FBR) for the airline’s aircraft. Obtaining this NOC was mandated by today’s deadline to ensure the fleet is legally cleared for the handover.

With management control expected by the end of May, the consortium plans to inject over Rs 125 billion into the airline. The immediate focus remains on doubling the operational fleet and restoring direct flight paths to Europe and the UK, marking a definitive end to the era of state-funded bailouts.