Overview
- An Arif Habib–led consortium won a $480 million auction for a 75% stake in PIA, with the government retaining 25%.
- PIA’s legacy debt, reported at PKR 65,000 crore, was shifted to a holding company along with assets including the Roosevelt and Scribe hotels.
- Sale terms bar staff restructuring for 12 months and grant the buyers an option to purchase the remaining 25% within a year at a 12% premium.
- The incoming owners inherit steep operational problems, including only about 18 of 38 aircraft in service, an average fleet age of 17.8 years, and a staff-to-fleet ratio near 397.
- The privatization advances IMF-driven reforms and follows the lifting of EU and UK flight bans this year, with operational control expected to transfer after regulatory approvals in early 2026.