The Arif Habib–led consortium has expanded its group in the takeover of Pakistan International Airlines (PIA) with the addition of Fauji Fertiliser Company Limited, following the consortium’s success in securing a controlling stake in the national carrier through a competitive privatisation process.
Fauji Fertiliser Company joins PIA privatisation consortium
Fauji Fertiliser Company Limited has confirmed that its board has approved participation in the consortium that emerged as the highest bidder for PIA. The group acquired a 75 percent shareholding in the airline with a bid of Rs135 billion during the open auction conducted by the Privatisation Commission.
The consortium is led by Arif Habib Corporation Limited and also includes Fatima Fertilizer Company Limited, The Lake City Holdings (Private) Limited, AKD Group Holdings (Private) Limited, and City Schools (Private) Limited.
Investment and restructuring plans outlined
According to the consortium, Fauji Fertiliser Company’s inclusion is expected to strengthen the airline’s financial and operational capacity. The group has indicated plans to invest significant capital during the first year to address operational bottlenecks, improve ground handling, and raise overall service standards.
The consortium has also proposed a major expansion of PIA’s fleet, with the number of operational aircraft expected to increase in phases from the current level to more than 60 aircraft over time.
Approvals and transaction timeline
The transaction remains subject to regulatory clearances and final approvals from the Privatisation Commission Board and the federal cabinet. Once approved, a formal contract will be signed, followed by a defined period to complete financial close and fulfil legal and regulatory conditions.
Officials involved in the process have said the structure of the deal is designed to inject fresh capital into PIA rather than simply transfer ownership, with a substantial portion of the funds earmarked for the airline’s restructuring and revival.
Option to acquire remaining stake
The consortium has also retained the option to acquire the remaining 25 percent stake in PIA within a 90-day window. Any additional purchase would involve payment to the federal government, separate from funds allocated for airline operations.
Consortium representatives have said discussions on exercising this option are ongoing and that a final decision will be taken within the allowed timeframe.
Background to the auction
The PIA sale marked Pakistan’s first major privatisation in nearly two decades and forms part of broader economic reforms linked to an International Monetary Fund programme. During the bidding process, two consortia advanced to the final round after exceeding the reference price, while private airline Airblue and Fauji Fertiliser Company withdrew earlier.
The auction concluded after multiple bidding rounds, with the Arif Habib–led group submitting the highest offer.
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