Fri Dec 26 11:54:13 UTC 2025: Pakistan Sells Struggling National Airline PIA for $482 Million

Islamabad, Pakistan – Pakistan International Airlines (PIA), the nation’s flag carrier, has been sold for $482 million to a consortium led by finance mogul Arif Habib, marking the end of a protracted privatization effort. The deal, driven by pressure from the International Monetary Fund (IMF) to offload loss-making state-owned enterprises, was finalized in a publicly televised auction.

The winning consortium, led by Arif Habib Limited (AHL), includes AKD Group Holdings Limited, Fatima Fertilizer, City Schools, and Lake City Holdings Limited. Notably, Fauji Fertilizer Company Limited (FFC), a military-owned entity, has also joined the group, raising eyebrows and sparking debate.

The auction followed a previous failed attempt in October 2024. To attract investors, the government restructured PIA, hiving off long-term liabilities and offering tax relief. The Arif Habib consortium intends to buy the remaining stake as well, with the aim of relaunching the airline by April next year.

While government officials hailed the transaction as a success, opposition parties and commentators have voiced criticism. Concerns have been raised about the bidding process and the potential for the military’s involvement to further expand its influence in the economy. Economists, however, argue that the deal represents the best possible outcome, stemming losses and opening PIA up to private investment and improved management.

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