PIA shifts to private ownership after PKR 645 billion takeover deal
Dhaka: Pakistan International Airlines (PIA) has officially been handed over to new private ownership on June 29, marking a major shift for the country's flag carrier. The airline will now begin a restructuring program focused on fleet renewal, route expansion, and operational improvements.
The transition followed PIA Equity Ltd, a special-purpose vehicle of the Arif Habib Consortium, completing the takeover after receiving local and international regulatory approvals.
PIA Equity Ltd has taken full ownership of the airline through a transaction valued at approximately PKR 180 billion. The consortium includes Arif Habib Group, Fatima Fertiliser Company, Fauji Fertiliser Company, Lake City Holdings, The City School, and AKD Group Holdings.
As part of the deal, PKR 55 billion will go toward government proceeds, while PKR 125 billion will be injected directly into PIA as fresh equity to support operational restructuring, fleet renewal, route expansion, and improvements to passenger services.
Pakistan's Prime Minister Shehbaz Sharif shared the news on his official social media handle, calling it another milestone in the country's economic reform journey. He said the financial closing of the privatization transaction and the transfer of management control to the investor consortium marked the beginning of a new chapter for the national carrier.
The prime minister added that the transformational investment to modernize and strengthen PIA was laying the foundation for its revival while reinforcing investor confidence in Pakistan.
Speaking after the takeover, the new ownership said its relationship with passengers would remain central under the new structure, noting that trust is earned over time rather than transferred through a document.
The statement added that PIA would continue to honor its heritage while building a premium, modern aviation experience.
The new management said the airline is now prepared to focus on improving operations and competing with international carriers, following the transfer of operating rights and the restructuring of legacy liabilities.
