After successfully acquiring Pakistan International Airlines (PIA), the Arif Habib Consortium has announced that Fauji Fertilizer Company (FFC) has joined the deal as a strategic partner.
Representatives of the Arif Habib Group expressed confidence that Fauji Fertilizer’s involvement would play a key role in reviving the national airline. They said the partnership would strengthen PIA’s restructuring process and support long-term operational stability.
The consortium plans to invest Rs125 billion into PIA within the next year. This investment will be used to upgrade systems, improve services, and significantly expand the airline’s fleet from 18 aircraft to 62. Officials also stressed their commitment to creating better career opportunities for PIA employees while improving comfort and service quality for passengers.
“Our focus will be on enhancing the passenger experience and building a strong, professional working environment for employees,” the group stated. The collaboration is expected to speed up reforms and help restore PIA’s status as Pakistan’s national flagship airline.
Historic Privatization Deal
The Arif Habib Consortium secured PIA through a landmark privatization auction, submitting a winning bid of Rs135 billion for a 75 percent stake in the airline. This narrowly beat the Lucky Consortium’s offer of Rs134 billion.
Under the agreement, the government will receive an immediate cash payment of Rs10.2 billion. Officials noted that this transaction represents Pakistan’s first major privatization in nearly 20 years and is projected to reduce government losses by about Rs35 billion annually.
The acquisition aligns with the government’s broader economic reform strategy, which focuses on overhauling loss-making state-owned enterprises. Market analysts view the deal as a positive signal for investor confidence in Pakistan.
Previously, an attempt to privatize PIA last year failed after the government set a minimum price of $305 million for a 60 percent stake. The only bidder at the time, Blue World City, later withdrew due to financial and operational concerns.
With the privatization now finalized, the Arif Habib Group is set to lead PIA’s transformation, offering renewed optimism for the airline’s future and Pakistan’s privatization efforts.