In late December 2025, a major development took place in Pakistan’s aviation sector. A consortium led by the Arif Habib Group won the bid to acquire a 75% stake in Pakistan International Airlines (PIA) for Rs135 billion. This marks one of the biggest privatization moves in the country’s recent history.
Under this deal, the government received around Rs10.2 billion in cash, while the remaining amount will be reinvested directly into PIA to help upgrade and restructure the struggling airline. The goal is simple: to bring PIA back to life after years of financial losses and operational challenges.
What This Means for PIA
The privatization deal is expected to kick-start a major transformation. The new owners have committed to modernizing PIA through better management, improved services, and a stronger fleet.
Here’s a quick breakdown of the key highlights:
Who Bought PIA?
A consortium led by Arif Habib Corp, joined by:
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Fatima Fertilizer
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City Schools
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Lake City Holdings
Size of the Stake
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75% ownership of PIA acquired.
Total Deal Value
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Rs135 billion (approximately $482 million USD).
Government’s Share
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Around Rs10.2 billion received in cash.
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The rest of the funds will be reinvested into PIA for upgrades and improvements.
Future Investment
The consortium plans to invest $400 million (Rs80 billion) over the next five years to:
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Expand and modernize the fleet
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Improve operations and customer service
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Reduce PIA’s heavy debt burden
Why This Matters
This is Pakistan’s second major attempt to privatize PIA. With strong private-sector leadership and fresh investment, there is renewed hope that the national airline can finally become profitable and regain its reputation.
If successful, this deal could reshape Pakistan’s aviation industry and set PIA on a new path toward stability, efficiency, and growth.
