Arif Habib Consortium Acquires Major Stake in PIA Amid IMF Scrutiny

An Arif Habib-led consortium won the PIA auction with a 135 billion rupee bid. The agreement aims to privatize 75% of the airline, with a government stake of 25% retained. It includes a 10 billion rupee upfront payment, and operations are expected to shift to new ownership by April.

KARACHI – In a significant shift for Pakistan International Airlines (PIA), the nation's flag carrier will transition to new ownership as a consortium led by Arif Habib Corporation bids 135 billion rupees, substantially above the government-set 100 billion reserve. This move marks a critical juncture in the long-stalled privatization efforts.

The successful bid guarantees the government 10 billion rupees upfront, with the state retaining a 25% stake valued at 45 billion rupees. The sell-off comes amidst pressure from the International Monetary Fund (IMF), urging Pakistan to minimize losses from state-owned enterprises.

According to privatisation adviser Muhammad Ali, the consortium could potentially invite additional partners, enhancing financial solidity. He highlights that the deal aims to infuse fresh capital into PIA, ensuring the airline's sustainable operation rather than just a change in ownership.

(With inputs from agencies.)