New PIA owners look for strategic partner to rebuild the airline

A consortium led by Arif Habib Corporation says it is exploring the addition of a new partner as it prepares to take on the task of turning around Pakistan International Airlines (PIA) after acquiring a controlling stake.

Speaking to reporters, Arif Habib said the group is conducting due diligence to identify an investor or operator that can add real operational and commercial value. He noted that multiple parties have shown interest in joining the effort.

The consortium secured 75% of PIA in a privatisation auction with a top bid of Rs135 billion, a sale the government has described as aligned with commitments under Pakistan’s IMF programme. The group plans to expand capacity, including increasing the fleet to 38 aircraft from 18 and recruiting additional staff.

Under the privatisation conditions, the new owners are expected to assume operational control in April and are barred from laying off employees for a year. Current staff will be assessed over that period, with retention tied to performance.

Habib said ownership is split among several local groups, including Arif Habib Corp and Fatima Fertiliser, Fauji Fertiliser, and other partners, with an option available to purchase the remaining government stake later at a premium.