Pakistan has sold a 75% stake in its national flag carrier, Pakistan International Airlines (PIA), to a consortium led by the Arif Habib Group after it submitted the highest bid of about US$482 million, officials said on Tuesday.
The winning offer of 135 billion Pakistani rupees was made under the government’s long-delayed privatization programme, aimed at cutting losses at state-owned enterprises and easing pressure on public finances. The government will retain the remaining 25% stake in the airline.
The Arif Habib Group, one of Pakistan’s largest conglomerates with interests in financial services, cement, steel, energy and fertilizers, is widely known for its strong presence in capital markets through listed companies and investment firms.
PIA has faced years of financial strain due to mounting debt, operational inefficiencies and political interference, and has depended heavily on government support to continue operations.
Officials said the transaction is subject to regulatory approvals and completion of legal procedures, adding that the new ownership is expected to improve management practices and restore the airline’s financial stability.
