PIA privatisation deal signed with Arif Habib consortium
Business
Pakistan marks a historic milestone as PIA privatisation concludes with Arif Habib Consortium agreement, securing $650 million investment to revitalise the national airline.
ISLAMABAD (Dunya News) – Pakistan has achieved a major milestone in the privatisation of Pakistan International Airlines (PIA), with the signing of the transaction agreement between the government and the Arif Habib Consortium in a ceremony held in Islamabad.
The event was attended by Prime Minister Shehbaz Sharif and Chief of Army Staff and Chief of Defence Forces, Field Marshal Syed Asim Munir. The ceremony marked the formal exchange of documents related to the acquisition of the national carrier.
Prime Minister Sharif congratulated the nation, saying the privatisation process had reached a successful conclusion. “I personally know Arif Habib and his team; they are among Pakistan’s finest business ambassadors on the global stage,” he remarked.
He added that the primary priority of PIA would remain the comfort, dignity, and safety of passengers. Recalling the airline’s peak years, especially in the 1960s, he expressed confidence that the consortium would restore PIA to its former glory.
At the start of the ceremony, Prime Minister’s Privatisation Adviser Muhammad Ali thanked the prime minister and Field Marshal Asim Munir for their guidance and full cooperation, stating that without their support, this milestone could not have been achieved.
Muhammad Ali highlighted that today’s event represents a significant achievement for the current government, with the privatisation carried out in an effective and transparent manner as part of its broader reform agenda.
Under the terms of the agreement, the consortium will make a total investment of PKR 180 billion, equivalent to approximately $650 million. Of this, PKR 125 billion ($450 million) will be directly invested in PIA, while PKR 55 billion ($200 million) will be paid to the government.
The growth capital injected into PIA will be used to expand the fleet, enhance services, implement private-sector management practices, and restore the national carrier to its historic stature.
PM Shehbaz reiterated that the privatisation had been conducted transparently and underscored the airline’s former global reputation. “During its heyday, not only across Pakistan but worldwide, PIA was celebrated as ‘Great People to Fly With’. I am confident that Arif Habib and his entire team will bring PIA back to this position,” he said.
