- Arif Habib Group secures 75% of PIA in historic Rs135 billion auction.
- Fauji Fertilizer joins the consortium after withdrawing from the initial bid.
- Fleet to expand from 18 to 62 aircraft; jobs protected for one year.
- 92.5% of bid money will be reinvested into PIA for operations and upgrades.
- Remaining shares can be bought by 2/3 payment within 90 days and the rest within a year.
The Arif Habib Group won the Pakistan International Airlines (PIA) privatization auction yesterday with a final bid of Rs135 billion in the 12th round. The Lucky Group had offered Rs134 billion in a competitive 13-round bidding process. The reference price of the government was set at Rs100 billion. The auction was broadcast live.
Fauji Fertilizer Joins as Partner
Fauji Fertilizer Company (FFC) did not participate in the auction to stay eligible to join the winner later. Now, it has joined the Arif Habib consortium as a strategic partner. Privatization Adviser Muhammad Ali said this strengthens the group and ensures faster turnaround of PIA.
Future Plans for PIA
- The consortium plans to increase PIA’s planes from 18 to 62.
- They will invest Rs125 billion in the airline during the first year.
The new owners plan to focus on improving passenger service and making PIA’s operations more efficient. Employee jobs are protected for at least one year, and pensions and other benefits will continue to be managed and secured by the PIA Holding Company.
Financial Details
- 92.5% of bid money will go directly to PIA for operations.
- 7.5% of proceeds go to the government.
- The consortium can buy the remaining 25% stake within 90 days. Two-thirds of the payment needs to be completed within 90 days, and the remainder can be done within a year.
- PIA’s equity turned positive at Rs30 billion, showing a big improvement.
Current Status of PIA
- PIA operates 18 aircraft out of a 38-plane fleet and holds landing rights in 78 international airports.
- Key real estate, including the Roosevelt Hotel (New York) and Scribe Hotel (Paris), is not included in the sale.
- The deal only covers PIA’s airline business, like passenger flights, cargo, kitchen services, and staff training.
