Pakistan Sells National Airline PIA for Rs 135 Billion

Pakistan has sold its loss-making national airline, Pakistan International Airlines, to the Arif Habib consortium for Rs 135 billion, ending years of bailouts and failed privatisation efforts.

Pakistan’s government has sold debt-ridden Pakistan International Airlines to the Arif Habib investment consortium for Rs 135 billion after years of losses, bailouts and failed privatisation.

The sale followed aggressive bidding in Islamabad, ending a long effort to offload the struggling national carrier after an earlier privatisation attempt collapsed due to weak investor interest.

On December 23, the Arif Habib consortium outbid rivals Lucky Cement and private airline Airblue, securing the highest offer during a competitive, multi-round auction process.

Once a symbol of national pride, PIA was among Asia’s leading airlines, pioneering jet operations before decades of mismanagement, mounting debt and safety concerns eroded its standing.

The airline recorded losses exceeding Rs seventy-five billion recently, while liabilities ballooned beyond Rs eight hundred billion, making privatisation the government’s only viable rescue option.

The auction’s first round saw Arif Habib lead, prompting Airblue’s exit, before a final round pushed bids higher, ending with a Rs one hundred thirty-five billion offer.

Arif Habib said privatisation would boost investment, revive PIA’s fortunes and attract foreign airline partnerships, while committing to additional capital injections over the coming years.

Prime Minister Shehbaz Sharif hailed the deal as historic, saying transparent privatisation signalled investor confidence, while officials voiced hopes of reviving PIA and strengthening Pakistan’s economy.

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