Pakistan International Airlines Completely Privatised Vide A $645 Million Takeover Deal.

Rawalpindi; June 2026: Pakistan International Airlines (PIA) has officially moved under new private ownership, marking a major change for the country’s flag carrier. Arif Habib-led consortium takes control with plans for restructuring programme focused on fleet renewal, route expansion and operational improvements.

The transition took place after PIA Equity Ltd, a special-purpose vehicle of the Arif Habib Consortium, completed the takeover of the airline following the receipt of local and international regulatory approvals. The new ownership structure is the result of Pakistan’s privatisation process, which was launched to bring private-sector investment into the loss-making national carrier and support its long-term transformation.

PIA Equity Ltd has taken full ownership of the airline through a transaction valued at approximately Rs. 180 billion ($645 Million). The consortium includes Arif Habib Group, Fatima Fertiliser Company, Fauji Fertiliser Company, Lake City Holdings, The City School and AKD Group Holdings.

As part of the deal, Rs. 55 billion will go towards government proceeds, while Rs. 125 billion will be injected directly into PIA as fresh equity to support operational restructuring, fleet renewal, route expansion and improvements to passenger services.

Shehbaz Sharif, Prime Minister of Pakistan shared the news on X. He said, “Today marks another important milestone in Pakistan’s economic reform journey. The successful First Financial Closing of the PIA privatisation transaction, and the transfer of management control to the investor consortium, marks the beginning of a new chapter for our national carrier. With a transformational investment to modernise and strengthen PIA, we are laying the foundation for its revival while reinforcing investor confidence in Pakistan”.

The Pakistani Prime Minister has further added, “I commend Deputy Prime Minister and Foreign Minister Senator Mohammad Ishaq Dar, and pay special tribute to Field Marshal Syed Asim Munir and his dedicated team, as well as Adviser to the Prime Minister on Privatisation Muhammad Ali, Finance Minister Senator Muhammad Aurangzeb, the Privatisation Commission, and all those whose professionalism, commitment and tireless efforts made this landmark achievement possible. Together, we will continue to pursue bold reforms that strengthen our economy, create opportunities for our people, and secure a more prosperous future for Pakistan”.

The takeover follows a closely contested bidding process in which the Arif Habib-led consortium emerged as the highest bidder for PIA. The consortium submitted a final bid of Rs. 135 billion ($483.75 million), narrowly ahead of the Lucky Group consortium, which placed a bid of Rs. 134 billion. The government had set a reserve price of Rs. 100 billion ($358.18 million) for the airline.

Other groups that participated in the process included consortia involving Arif Habib, Fatima Fertiliser, The City School and Lake City Holdings, as well as private airline Airblue and the Lucky Group consortium.

The privatisation is the Pakistani government’s second attempt to sell PIA after an earlier effort failed to meet pricing expectations. Since then, authorities restructured the airline’s liabilities, introduced tax exemptions on aircraft leasing and provided regulatory measures to attract investors.

Speaking after the takeover, the new ownership said in a statement that its relationship with passengers would remain central under the new structure. “As the new ownership officially takes over today, we deeply understand that the trust of a nation isn’t simply transferred on a document. Trust is earned: mile by mile, smile by smile, year by year”, the statement read, while adding, “PIA will continue to honour its deep-rooted heritage while building a premium, modern aviation experience”.

The new management said the airline is now prepared to focus on improving operations and competing with international carriers, following the transfer of operating rights and restructuring of legacy liabilities.

According to the PIA official sources, as of December 2025, Pakistan International Airlines is operating a fleet of 19 active aircraft. This figure includes 11 A320s, 02 ATR42-500 turboprops and 06 B777s, in different versions.

It is noteworthy that the airlines were planning for the sale-bid since a long when it had scrapped all passenger discounts and scaled back flight operations citing surging jet fuel prices strain the carrier’s finances.

A spokesperson for the national airline said concessions would now be limited to children and infants, with all other fare discounts withdrawn as part of a broader cost-control strategy. “The PIA has made a principled decision to end all discounts, with concessions remaining only for children and infants”, the spokesperson said, adding that the move followed a high-level review of rising fuel costs and potential losses.

Team Maverick.