In a landmark move for Pakistan’s aviation sector, the Arif Habib Group-led consortium has announced plans to acquire the government’s remaining 25% stake in Pakistan International Airlines (PIA). This follows their successful 75% acquisition in December 2025, effectively placing the national carrier under complete private control.
The transition is expected to be finalized by late April or early May 2026.
The Acquisition Details
The consortium, which won the initial bid with an offer of Rs 135 billion ($482 million) for a 75% stake, is now moving to buy the remaining shares to ensure absolute decision-making autonomy.
More direct flights.
Non-stop convenience.
Endless connections. #PIA now brings you 3 weekly non-stop flights from #Islamabad to #London, connecting you straight to the heart of the #UK with comfort & confidence.Starting from 29 March 2026.
Book now#Islamabadtolondon… pic.twitter.com/0rYaLndlIZ
— PIA (@Official_PIA) January 21, 2026
- Valuation of Remaining Stake: Rs 45 billion ($161 million).
- Payment Timeline: Once the decision is formally conveyed, the group has 12 months (until April 2027) to complete the payment to the Government of Pakistan.
- Consortium Composition:
- Fatima Fertiliser: 34.1%
- Fauji Fertiliser: 33.9%
- Lake City: 16%
- City School with AKD Group: 16%
The Road to 38 Aircraft
Shahid Ali Habib, CEO of Arif Habib Ltd, has outlined an aggressive turnaround plan to restore PIA’s lost glory and international standing:
- Fleet Expansion: The current operational fleet of 18 aircraft is targeted to grow to 38 aircraft within a few years.
- Interim Solution: Since new Boeing or Airbus delivery slots are backlogged until 2030, the group will acquire 8-to-10-year-old aircraft to stabilize short-term operations.
- Route Optimization: Frequencies on commercially viable routes will be increased (e.g., moving from bi-weekly to nearly daily flights).
- International Connectivity: A primary focus is re-establishing direct long-haul flights to the UK, USA, and Europe to reclaim market share from regional transit hubs.
Operational Independence
By moving from 75% to 100% ownership, the Arif Habib Group will be able to operate PIA as a fully private entity. This removes the requirement for government-appointed board members, allowing the new management to implement structural reforms, rebrand the airline, and raise capital through a planned Initial Public Offering (IPO) on the PSX within the next year.
Key Milestone: This represents Pakistan’s first major privatization of a state-owned enterprise in nearly two decades.
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