ISLAMABAD – The government is set to transfer ownership of Pakistan International Airlines (PIA) to the Arif Habib-led Consortium later this month.
According to a letter from the Privatization Commission to the stock exchange, the consortium has acquired the remaining 25 percent shares of PIA.
The handover will be contingent upon the implementation of specific conditions outlined in the privatization agreement. The commission is expected to announce the official first closing date soon.
The consortium purchased PIA for Rs180 billion, with Rs55 billion going to the government and the remaining amount reinvested as fresh equity into the airline.
The agreement also stipulates that the new management cannot lay off any PIA employees for the first year of operation.
Taking full control will allow Arif Habib group to implement management changes and steer PIA’s turnaround without interference from government-appointed board members.
CEO of Arif Habib Ltd said the change of sponsors is expected in late April or early May. Speaking with local publication, he said the move will enable airline to operate fully as a private entity, giving us the freedom to implement reforms swiftly and effectively.
The government provided 90-day window for the consortium to acquire the remaining 25% stake, valued at roughly Rs45 billion, with a deadline at the end of April. Under the agreement signed in January, the consortium has up to 12 months to complete fund transfer, making the acquisition fully achievable.
In December last year, Pakistan International Airlines (PIA) took historic step toward privatization and the auction, broadcast live on national television, marked government’s second attempt to privatize PIA after a previous effort had failed.
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