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Fauji Fertiliser Joins Arif Habib-Led Group That Won Rs135 Billion Sale of PIA

The structure directs nearly all proceeds into PIA as fresh equity, with the government keeping a minority stake pending final approvals.

Overview

  • A televised auction awarded a 75% controlling stake in PIA to an Arif Habib-led consortium for Rs135 billion, surpassing the Rs100 billion reserve as Lucky Cement finished second.
  • Under the terms, the state receives about Rs10.1 billion in cash while roughly Rs124.9 billion is injected into PIA in two tranches—Rs83.25 billion upfront and Rs41.625 billion within 12 months.
  • The government retains 25% equity valued near Rs45 billion, asserting an overall take of about Rs55 billion, and the buyer has a 90-day option to seek the remaining shares.
  • Final steps include Privatisation Commission board endorsement to the cabinet, contract signing in the coming weeks and a 90-day financial-close period, with operational handover targeted for April 2026 subject to approvals.
  • The consortium confirmed Fauji Fertiliser as a partner and outlined revival plans that include a first-year investment of about Rs125 billion, fleet expansion toward roughly 62–64 aircraft, 12-month employee retention and significant tax concessions on aircraft, parts and dividends.