Story by Bahari Duniya | Written by Ranjan Sharma
In a landmark privatization move, Pakistan International Airlines (PIA) was sold for a whopping Rs 135 billion after a competitive, live‑televised auction on Tuesday, with a consortium led by Pakistani investment firm Arif Habib Corporation emerging as the successful bidder for a 75 percent controlling stake in the state‑run airline. The transaction marks a significant step in the government’s long‑overdue effort to tackle the chronic financial crisis of the national carrier and reduce the burden of losses on the public exchequer.
The Arif Habib‑led group outbid rival consortia, including one backed by Lucky Cement, in the open bidding process, and plans to inject fresh capital to revive PIA’s operations while the government retains a minority share and secures approvals for the deal ahead of an expected management transition by April 2026.
The Arif Habib-led consortium won the bid to acquire a 75% stake in Pakistan International Airlines (PIA) for Rs 4,300 crore (PKR 13,500 crore) during a televised auction. Once a leading airline in the region, PIA has faced decades of financial losses and mismanagement. The acquisition marks a major step in the government’s plan to privatize the national carrier, inject fresh capital, and improve operations, while retaining a minority stake and securing protections for employees during the transition to new ownership.
At the bidding ceremony, Finance Minister Muhammad Aurangzeb highlighted the transparency and competitiveness of the privatization process, stressing that the sale of Pakistan International Airlines (PIA) was conducted openly and fairly. He noted that the process reflects the government’s commitment to reviving the national carrier and ensuring accountability in public asset management.
The sale of Pakistan International Airlines (PIA) fulfills a long-standing recommendation from the International Monetary Fund (IMF), which has repeatedly urged the government to privatize the national carrier. This move forms part of broader economic reforms linked to IMF-supported bailout programmes, aimed at improving fiscal stability and reducing losses from state-owned enterprises.
The auction follows PIA’s resumption of direct flights to Europe, two months after the European Union Aviation Safety Agency lifted a four-year ban. The ban, imposed in 2020 after a tragic crash in Karachi that killed 97 people, had grounded the airline from European operations due to safety concerns.
Once regarded as a model airline, PIA has steadily declined over the years due to chronic overstaffing. With roughly 300 employees per aircraft across its 32‑plane fleet, the airline far exceeds the industry benchmark of fewer than 200 employees per aircraft. This high employee-to-aircraft ratio has contributed significantly to inefficiencies and financial strain on the national carrier.
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