PAKISTAN
The consortium led by Arif Habib Group has announced its intention to acquire the remaining 25 percent stake held by the Government of Pakistan in Pakistan International Airlines (PIA), a move that would give it full ownership and control of the national carrier.
Speaking to a British media outlet, Shahid Ali Habib, Chief Executive Officer of Arif Habib Limited, said the consortium has decided to proceed with the purchase of the outstanding shares. He stated that a formal decision is expected in April, with payment to be completed within the following 12 months.
According to Habib, once 100 percent ownership is secured, PIA will operate entirely as a private entity, free from government-nominated board members and direct state control.
In December last year, the Arif Habib-led consortium acquired 75 percent of PIA’s shares for Rs135 billion. The government’s privatization initiative aims to restructure the loss-making airline, expand its fleet, and improve passenger services to restore profitability.
Following the initial 75 percent sale, the government granted the consortium a 90-day window to exercise its option to acquire the remaining 25 percent stake, valued at approximately Rs45 billion. The deadline for this decision falls at the end of April. Under the agreement finalized in January, the consortium has a 12-month period to complete the financial settlement, making the transaction operationally viable.
The successful consortium comprises Fatima Fertilizer Company Limited (34.1 percent), Fauji Fertilizer Company Limited (33.9 percent), Lake City (16 percent), and a partnership between The City School and AKD Group (16 percent).
Habib noted that the airline’s turnaround strategy focuses on improving staff performance, upgrading ticketing systems, and enhancing safety and security standards. He emphasized that under full private ownership, PIA will be positioned to modernize operations and deliver improved services to passengers. – ERMD
READ MORE
Xiaomi unveils new in-house chip to reduce reliance on Qualcomm, MediaTek
Xiaomi Corp has unveiled a new mobile processor for its flagship smartphones, strengthening its push…
Google, Gimp patch high-risk security flaws
Google has released security updates for the desktop version of Chrome to address several high-risk…
Govt to privatise LESCO, MEPCO without splitting them
The Ministry of Privatisation has decided to privatise two of Pakistan’s largest power distribution companies,…
Kaspersky upgrades cybersecurity tools with AI-powered threat detection
Kaspersky has announced updates to its cybersecurity solutions aimed at helping Pakistani businesses strengthen their…
Sapphire Fibres joins GEPCO privatisation race
Sapphire Fibres Limited has formally expressed interest in participating in the privatisation of Gujranwala Electric…
Fast Cables Joins Consortium Seeking GEPCO Divestment
Fast Cables Limited has announced its participation in a consortium seeking to acquire the Gujranwala…