Arif Habib Group to Take Full Control of PIA with Rs 45 Billion Bid for Remaining Stake.

In a historic development for Pakistan’s aviation industry, the Arif Habib Group-led consortium has announced plans to acquire the remaining 25 percent stake in Pakistan International Airlines (PIA). This final acquisition, valued at approximately Rs 45 billion ($161 million), will grant the private group full ownership and end state involvement in the national carrier.

Key Highlights of the Takeover

• Total Ownership: The consortium, which secured a 75 percent stake in December 2025 for Rs 135 billion, is exercising its option to purchase the final government shares.
• Transition Timeline: Shahid Ali Habib, CEO of Arif Habib Limited, confirmed a formal decision is expected by April 2026, with the full payment process to be completed within a 12-month period.
• Private Governance: Upon completion, PIA will operate as a fully private entity without any government-appointed board members, allowing for independent commercial decision-making.
• The Powerhouse Consortium: The lead investor group includes major industry names: Fatima Fertilizer (34.1%), Fauji Fertilizer (33.9%), Lake City (16%), and a combined 16% stake held by AKD Group and The City School.
• Revitalization Strategy: The new management plans to inject Rs 125 billion to upgrade the airline. Key goals include:
  • Fleet Expansion: Increasing the operational fleet from 18 to 38 aircraft in the coming years.
  • Enhanced Connectivity: Increasing flight frequencies on viable routes and restoring direct long-haul flights to the UK and Europe.
  • Service Standards: Improving safety, security, ticketing systems, and overall customer service quality.