Arif Habib creates PIA takeover vehicle

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Ground staff stand next to the Pakistan International Airline (PIA) aircraft ahead of its takeoff for Paris at the Islamabad International Airport on Jan 10, 2025. — AFP
Ground staff stand next to the Pakistan International Airline (PIA) aircraft ahead of its takeoff for Paris at the Islamabad International Airport on Jan 10, 2025. — AFP

KARACHI: The Arif Habib-led consortium has established a special purpose vehicle, PIA Equity Ltd (PIAEL), to complete its acquisition of Pakistan International Airlines, Arif Habib Corporation Ltd (AHCL) announced on Thursday.

The consortium has submitted a standby letter of credit and a bank guarantee to the Privatisation Commission for the acquisition of the remaining 25 per cent shares of PIA.

The consortium has already acquired a 75pc stake in Pakistan International Airlines Corporation Ltd (PIACL) for Rs135 billion, while the remaining 25pc will cost Rs45bn. The consortium is expected to assume full ownership within the next 12 months upon completion of payments.

PIA Equity Ltd’s shareholding comprises Arif Habib Corporation Ltd, Fatima Fertiliser Company Ltd, Lake City Holdings, AKD Group, The City School Group, and Fauji Fertiliser Company Ltd.

PIAEL will act as the central platform for the acquisition and future management of PIACL, bringing together institutional investors under a unified structure.

The management changes and full private control was expected by early next month, freeing the airline from government-appointed board members.

Thousands of workers of PIA could be problematic for the new management as there is resistance among the workers regarding complete privatisation as their jobs may be at stakes.

Published in Dawn, May 1st, 2026

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