Arif Habib-led consortium notifies Privatisation Commission of its intent to acquire remaining 25pc PIA stake

Published
0
A Pakistan International Airlines plane prepares to take-off at Alama Iqbal International Airport in Lahore, on February 1, 2012. — Reuters/File
A Pakistan International Airlines plane prepares to take-off at Alama Iqbal International Airport in Lahore, on February 1, 2012. — Reuters/File

ISLAMABAD: The Privatisation Commission announced on Thursday that the consortium led by Arif Habib Corporation Limited has notified it of its intent to acquire the remaining 25 per cent equity stake in Pakistan International Airlines Corporation Limited (PIACL), paving the way for full private-sector ownership of the national carrier.

It said that the total private-sector investment in the transaction was expected to amount to approximately Rs180 billion, comprising a minimum of Rs55 billion payable to the government as divestment proceeds and Rs125bn to be injected as fresh equity into PIACL to support the airline’s recapitalisation.

“The planned equity injection will support fleet expansion and modernisation, route development, and improvements in customer service and operational systems,” the commission said.

It said that management control was expected to be transferred on or before May 25, the first closing date announced by the Privatisation Commission, subject to the fulfilment of conditions set out in the Share Purchase and Subscription Agreement (SPSA) signed on January 29.

“The notice of intent to acquire the remaining 25pc equity stake (call option) has been accompanied by the requisite standby letter of credit and will be exercised in accordance with the terms of the SPSA,” it said.

It added that the Privatisation Commission, the consortium, the government of Pakistan, and PIACL were working jointly to fulfil the conditions precedent ahead of the first closing.

The consortium comprises Arif Habib Corporation Limited, Fatima Fertiliser Company Limited, Lake City Holdings (Private) Limited, The City School (Private) Limited, AKD Group Holdings (Private) Limited, and Fauji Fertiliser Company Limited.

Earlier this week, the consortium submitted a standby letter of credit and a bank guarantee to the Priva­tisation Commission to acquire the remaining shares from the government.

The consortium had acquired a 75pc stake in the national flag carrier for Rs135bn in December 2025.

Follow Dawn Business on X, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Editorial

Blue wave
Updated 05 Nov, 2026

Blue wave

While Trump does not usually learn from his errors, perhaps seeing the response of the American voters he may attempt a wiser course.
New LPG policy
05 Nov, 2026

New LPG policy

EACH winter, millions of working-class households across the country face the same ordeal. LPG, long considered the...
Polio’s other victims
05 Nov, 2026

Polio’s other victims

FOR decades, Pakistan has vowed to eradicate polio. Billions have been spent on logistics and awareness drives. Yet...
Electoral reform
Updated 04 Nov, 2026

Electoral reform

The real problem is the gulf between the statute book and what happens on polling day, not the laws.
Competing demands
04 Nov, 2026

Competing demands

THE climate crisis is becoming harder to confront as the world develops new ways to consume scarce resources. At an...
Belated meeting
Updated 04 Nov, 2026

Belated meeting

Whether it is Imran Khan, his family members, or other incarcerated political leaders and activists, the state should not deny them their rights.