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Arif Habib Consortium Wins 75% of PIA for Rs135 Billion, Takeover Targeted by April

The structure channels nearly all proceeds back into the airline, leaving the state with a 25% stake.

Overview

  • A live, televised auction delivered a Rs135 billion top bid for 75% of PIA, exceeding the Rs100 billion reserve as Lucky Cement finished second.
  • About 92.5% of the proceeds (roughly Rs124–125 billion) will be injected into PIA via a rights issue, with the government receiving around Rs10 billion in cash and retaining a 25% stake valued near Rs45 billion.
  • Final steps include Privatisation Commission board endorsement to the cabinet committee, cabinet action and contract signing in the coming weeks, and financial close after about 90 days before operations shift to the buyer around April 2026.
  • Concessions include GST exemption on aircraft, engines and parts plus multi‑year tax relief, while the buyer must keep all employees for 12 months and pay two‑thirds of the bid at first close and the balance within a year.
  • The Arif Habib-led group includes Fatima Fertiliser, City Schools and Lake City, with Habib saying Fauji Fertiliser has joined, and it plans to expand the fleet in phases toward roughly 64 aircraft.