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
FPCCI Warns of Deepening Energy Crisis, Urges Immediate Industrial Relief
ENERGY The Federation of Pakistan Chambers of Commerce and Industry on Wednesday raised alarm over…
Pakistan Market: Technical Outlook Today
KSE-100: Upside likely SHARE MARKET April 17: The KSE-100 index extended the gain to close…
President Zardari Orders Fast-Tracking of Small Dams, Recharge Wells, Storage Projects
WATER RESOURCES President Asif Ali Zardari chaired a meeting on water resources management at Aiwan-e-Sadr…
From Concept to Craft: How Bembel Ensures Quality in Every Bag
In the fast-paced world of fashion, creating a product that stands out not only requires…
PCR Tyres Project: Service Long March Tyres plans $28mn IPO at PSX
MARKETS Service Long March Tyres Limited (SLM), a subsidiary/associated company, has filed its prospectus with…
PSO Appoints Jawwad Ahmed Cheema as Chief Executive Officer for 3-year Term
ENERGY Pakistan State Oil (PSO) has announced that that the Board of Management of Pakistan…