Pakistan’s long-awaited privatization process has entered a significant new phase as the consortium led by Arif Habib Corporation Limited has formally expressed its intention to acquire the remaining 25% equity stake in Pakistan International Airlines Corporation Limited (PIACL), paving the way for full private-sector ownership of the national carrier.
According to a material information notice issued by PIA Holding Company Limited (PIAHCL) on May 4, 2026, the consortium has notified the Privatization Commission of its plan to exercise the option to purchase the government’s remaining shareholding in PIACL. The move follows earlier disclosures regarding the airline’s ongoing privatization process and is being undertaken in accordance with the Securities Act, 2015 and Pakistan Stock Exchange regulations.
The transaction is expected to reach a major milestone on or before May 25, 2026, the “First Closing Date” announced by the Privatization Commission, subject to the fulfillment of conditions outlined in the Share Purchase and Subscription Agreement (SPSA) signed on January 29, 2026. The notice states that the consortium has already submitted the required Standby Letter of Credit alongside its notice of intent to acquire the remaining stake.
The total investment associated with the transaction is projected at approximately PKR 180 billion. Of this amount, at least PKR 55 billion will be paid to the Government of Pakistan as divestment proceeds, while PKR 125 billion will be injected into PIACL as fresh equity to support the airline’s recapitalization efforts.
The planned equity injection is expected to play a crucial role in strengthening the airline’s financial position and supporting fleet expansion, modernization initiatives, route development, and improvements in customer service and operational systems. These investments are intended to enhance PIA’s competitiveness and long-term sustainability in both domestic and international markets.
The acquiring consortium comprises Arif Habib Corporation Limited, Fatima Fertilizer Company Limited, Lake City Holdings (Private) Limited, The City School (Private) Limited, AKD Group Holdings (Private) Limited, and Fauji Fertilizer Company Limited. The stakeholders are working collectively to satisfy all remaining conditions precedent ahead of the first closing.
The latest development marks a major step toward completing one of Pakistan’s most closely watched privatization transactions, with expectations that private-sector ownership and fresh capital investment could help transform the national airline’s operational and financial performance in the years ahead.
