PIA privatisation: management control likely by May 25

The consortium led by Arif Habib Corporation has notified the Privatisation Commission to acquire the remaining 25% stake in Pakistan International Airlines, with management control of the national carrier expected to be transferred by May 25, 2026. In a notice to the Pakistan Stock Exchange on Monday, the airline said the consortium notified the Privatisation Commission of its intent to acquire the remaining equity stake in Pakistan International Airlines Corporation Limited (PIACL), paving the way for full private-sector ownership of the national carrier. “The management control is expected to be transferred on or before May 25, 2026, the ‘first closing date’ announced by the Privatisation Commission, subject to the fulfilment of conditions precedent set out in the Share Purchase and Subscription Agreement (SPSA) signed on January 29, 2026, ” read the notice. The notice added that the call option has been accompanied by the requisite Standby Letter of Credit. The total investment in the transaction is estimated at around Rs180 billion. This includes a minimum of Rs55 billion payable to the Government of Pakistan as divestment proceeds, and Rs125 billion to be injected as fresh equity into PIACL to support the airline’s recapitalisation. “The planned equity injection will support fleet expansion and modernisation, route development, and improvements in customer service and operational systems, ” read the notice. The consortium comprises Arif Habib Corporation Limited, Fatima Fertilizer Company Limited, Lake City Holdings (Pvt) Limited, The City School (Pvt) Limited, AKD Group Holdings (Pvt) Limited and Fauji Fertilizer Company Limited. Last week, Aqeel Karim Dhedhi, the founding chairman of AKD Group, informed that the Arif Habib consortium acquired the remaining 25% shareholding in the PIA from the government, elevating the private sector ownership in the national carrier to 100% to increase the fleet size to 50 aircraft by September 2026. Last year, the consortium acquired 75% stakes in the PIA for Rs135 billion, announcing that some Rs125 billion would be reinvested in the airline, while the government earned the remaining Rs10 billion.

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