PIA gets New Owner after 71 Years as Arif Habib Consortium takes charge
Why this matters: local context for readers following news across Pakistan and the region.
ISLAMABAD – After decades of state ownership, financial turmoil and repeated rescue efforts, Pakistan International Airlines (PIA) stepped into another era of what many hope will be the biggest turnaround in the loss making air carrier. The administrative control of national flag carrier was formally transferred to PIA Equity Ltd, a special-purpose vehicle of the Arif Habib Consortium, following the successful completion of the first financial close and all required regulatory approvals. The landmark transaction, worth Rs180 billion, is largest privatisation deal ever completed in Pakistan. It includes Rs125 billion in fresh investment to revive the struggling airline, while Rs55 billion will be paid to the government as proceeds from the sale. The consortium has already deposited an initial Rs1 billion as part of the takeover process. For millions of Pakistanis, PIA has long been more than just an airline. Once counted among the world’s finest carriers, it later became synonymous with mounting losses, ageing aircraft, shrinking routes and operational challenges. The new owners now face the enormous task of restoring the airline’s former reputation. The fresh capital will be directed towards renewing the fleet, expanding domestic and international destinations, improving operational efficiency and upgrading passenger services, with the aim of transforming PIA into a modern and financially sustainable airline. PIA Equity Ltd is backed by some of Pakistan’s leading business groups, including the Arif Habib Group, Fatima Fertiliser Company, Fauji Fertiliser Company, Lake City Holdings, The City School, and AKD Group Holdings. Chairman of PIA Equity Ltd said public confidence cannot simply be inherited through a business deal. Instead, he said, trust must be earned through better service, reliability and consistent performance, one flight at a time. The ownership change follows a fiercely contested bidding process. Arif Habib-led consortium secured the