Pakistan International Airlines Acquired by Investor Consortium Headed by Stockbroker

Pakistan International Airlines (PIA) has been acquired by a group of investors led by Arif Habib Limited, a well-known securities brokerage located in Karachi. This consortium also includes contributions from Fatima Fertilizer and AKD Group, both significant players in Pakistan’s industrial landscape.

The Pakistani government made the decision to sell the national carrier after enduring years of substantial losses.

The sale took place through an auction, wherein the winning consortium bid 135 billion Pakistani Rupees (approximately US$482 million) for a 75% stake in the airline.

The urgency to divest the airline increased as the International Monetary Fund (IMF) recommended streamlining state-owned enterprises to stabilize the nation’s fiscal condition.

Previous efforts to sell PIA fell through when only one bidder showed interest. However, this time, the competition was fierce, with other local firms like Lucky Cement and airblue entering the fray.

The new owners are anticipated to assume complete control of PIA by April 2026. There’s potential for additional companies, including Fauji Fertiliser Company, to join the acquisition group. The consortium also has the option to purchase the remaining 25% of the airline within a few months.

As part of the agreement, the Pakistani government will receive 10 billion Pakistani Rupees in cash, amounting to around 7.5% of the bid. The remainder will be utilized to restructure and revitalize the airline. The new ownership is also obligated to retain all current employees, with unchanged contracts, for at least 12 months post-acquisition.

Despite the acquisition, PIA still faces significant hurdles, including a precarious financial situation and a tarnished reputation among the public and regulatory bodies.

In 2020, PIA faced a ban from European airspace after it was revealed that numerous pilots had been operating with fraudulent licenses, following a tragic crash that resulted in the loss of 97 lives. The European Aviation Safety Agency (EASA) lifted this ban in December 2024.

It took an additional ten months for British aviation authorities to lift their own five-year ban, allowing PIA to resume direct flights to the UK, a crucial international market.

According to the ch-aviation database, as of December 2025, Pakistan International Airlines operates a fleet of 19 active aircraft, which includes 11 A320s, two ATR42-500 turboprops, and six B777s in various configurations.

How do you think this change in ownership will impact Pakistan International Airlines’ future?