Arif Habib-led consortium notifies Privatisation Commission of its intent to acquire remaining 25pc PIA stake

ISLAMABAD: The Privatisation Commission announced on Thursday that the consortium led by Arif Habib Corporation Limited has notified it of its intent to acquire the remaining 25 per cent equity stake in Pakistan International Airlines Corporation Limited (PIACL), paving the way for full private-sector ownership of the national carrier.

It said that the total private-sector investment in the transaction was expected to amount to approximately Rs180 billion, comprising a minimum of Rs55 billion payable to the government as divestment proceeds and Rs125bn to be injected as fresh equity into PIACL to support the airline’s recapitalisation.

“The planned equity injection will support fleet expansion and modernisation, route development, and improvements in customer service and operational systems,” the commission said.

It said that management control was expected to be transferred on or before May 25, the first closing date announced by the Privatisation Commission, subject to the fulfilment of conditions set out in the Share Purchase and Subscription Agreement (SPSA) signed on January 29.

“The notice of intent to acquire the remaining 25pc equity stake (call option) has been accompanied by the requisite standby letter of credit and will be exercised in accordance with the terms of the SPSA,” it said.

It added that the Privatisation Commission, the consortium, the government of Pakistan, and PIACL were working jointly to fulfil the conditions precedent ahead of the first closing.

The consortium comprises Arif Habib Corporation Limited, Fatima Fertiliser Company Limited, Lake City Holdings (Private) Limited, The City School (Private) Limited, AKD Group Holdings (Private) Limited, and Fauji Fertiliser Company Limited.

Earlier this week, the consortium submitted a standby letter of credit and a bank guarantee to the Priva­tisation Commission to acquire the remaining shares from the government.

The consortium had acquired a 75pc stake in the national flag carrier for Rs135bn in December 2025.