A consortium led by Arif Habib Corporation Limited has acquired a 75% [1] stake in Pakistan International Airlines (PIA).
The sale marks the culmination of a long-delayed effort by the federal government to privatize the loss-making national carrier and raise critical funds. By shifting ownership to the private sector, the government aims to reduce the financial burden of the airline's operational deficits.
The acquisition took place Tuesday during a televised auction held in Islamabad [3]. The consortium purchased the majority stake for Rs 135 billion [1, 2].
Government officials said the auction was a lawful process and a milestone for privatization, but the move has faced immediate political backlash. Chaudhary Manzoor Ahmed, a senior leader of the Pakistan Peoples Party (PPP), said the privatization was unconstitutional and demanded a judicial probe [4].
The federal government has sought to offload the carrier to stabilize the national economy. The process was designed to be transparent, though the opposition's calls for a probe suggest ongoing disputes over the legality of the transaction [3, 4].
Arif Habib Corporation Limited, a prominent Pakistani investment firm, will now lead the consortium in managing the airline's operations. The government retains a 25% stake in the company following the conclusion of the auction [1, 2].
“The consortium purchased the majority stake for Rs 135 billion.”
This privatization represents a significant shift in Pakistan's economic strategy, moving away from state-funded subsidies for a struggling national carrier. However, the immediate legal challenge from the PPP indicates that the transition may be marred by political instability and potential litigation, which could affect the new owners' ability to implement rapid restructuring.
