ISLAMABAD: The federal government on Thursday finalised a deal to privatise Pakistan International Airlines (PIA), signing transaction documents with the Arif Habib Consortium in a move the government says will generate Rs55 billion in revenue and revive the loss-making national carrier through fresh investment and management control. The agreement was confirmed during a meeting of the National Assembly’s Standing Committee on Privatisation, chaired by Farooq Sattar, where officials said the successful bidder will acquire 75pc of PIA’s shares against a total valuation of Rs135 billion.
Privatization Commission Secretary Usman Bajwa told the committee that the investor will first deposit Rs125 billion into PIA’s account, after which the shares will be transferred. He said the total market value of the 75pc stake stands at around Rs135 billion. The government will also have its 2 members on its board.
Under the deal, the government will receive Rs10 billion in the first phase, while the sale of the remaining 25pc shares at a later stage is expected to bring an additional Rs45 billion, raising total proceeds to Rs55 billion.
Bajwa said the new owners would be required to invest at least Rs90 billion over the next two years to stabilise operations, warning that without this injection the airline “cannot stand on its own feet”.
The business plan prepared for the new management includes doubling PIA’s aircraft fleet within five years, expanding routes, restoring engineering and cargo services, and doubling revenue over the same period. Negotiations have already been initiated with Boeing for new aircraft, officials said.
At present, Bajwa noted, PIA does not even have aircraft available to operate the Manchester route, highlighting the depth of the airline’s operational crisis.
The privatisation plan triggered questions in the committee, particularly over the eligibility of Arif Habib Group. Committee member Nauman Islam Sheikh pointed out that an affiliated company, Aisha Steel, is facing proceedings in the Supreme Court and asked how the group was cleared for bidding. Bajwa said all four bidding consortia underwent full financial and legal scrutiny by independent advisers and regulators, and no blacklisting was reported for any entity during the pre-qualification process.
Officials told the committee that without privatisation, the government would have to continue injecting around Rs60 billion annually to keep PIA afloat, calling the deal fiscally unavoidable. After privatisation, the airline will continue to be regulated by the Pakistan Civil Aviation Authority and other relevant regulators.
Meanwhile, Prime Minister Shehbaz Sharif Thursday said PIA would gain new heights under the leadership of Arif Habib Consortium as the airline would improve its performance, punctuality, cabin service and professional standards. He was speaking at a ceremony for signing of transaction documents between the government and Arif Habib Consortium regarding privatisation of PIA. The PM congratulated the nation on the signing ceremony for PIA privatisation. He said Arif Habib and his team were distinguished business ambassadors of Pakistan and they made a valuable contribution to the country’s progress.
He said the first priority of the new owners of PIA would be comfortable journey of passengers and their safety. He recalled that in the 1960s, PIA was at its peak, with the airline being a prominent and recognizable name in cities across Pakistan and in world capitals. He praised federal ministers, Chief of the Army Staff and Chief of Defence Forces (CDF) Field Marshal Asim Munir for their commitment to the national interests. He also appreciated Adviser for Privatisation Muhammad Ali for successful PIA privatisation.
The PM said the PIA privatisation process was telecast live and conducted in a transparent manner. He said bidding was closed at the price of Rs180 billion, out of which the consortium will spend Rs135 billion on improvement of PIA while the government would get Rs55 billion.
Deputy Prime Minister and Foreign Minister Ishaq Dar, COAS/CDF Field Marshal Asim Munir and federal ministers attended the ceremony.
Separately, Ambassador of the European Union, Raimundas Karoblis, Thursday called on PM Shehbaz Sharif here and pledged his efforts to strengthen Pakistan-EU relations in all spheres. The PM was assisted by DPM Ishaq Dar, Adviser to the PM Dr Tauqir Shah, SAPM Tariq Fatemi and Foreign Secretary Amna Baloch, a PM Office news release said.
The PM stressed critical role of the GSP Plus scheme in enhancing trade between Pakistan and the EU, and said Pakistan is committed to working closely with the EU on mutually beneficial trade enhancement initiatives, especially through the GSP Plus initiative.
Also, PM Shehbaz Sharif Thursday lauded the police and security forces for conducting a successful operation against militants in Bannu, neutralising three terrorists and thwarting their subversive designs.
Separately, Chief of Army Staff and Chief of Defence Forces (COAS/CDF) Field Marshal Asim Munir Thursday said the character of warfare was evolving rapidly due to technological advancements, with future conflicts increasingly driven by technological manoeuvres rather than traditional physical movements.
Addressing officers and troops during his visit to Bahawalpur Garrison, the army chief noted that both offensive and defensive operations were being fundamentally reshaped, adding that the Pakistan armed forces were undergoing a major transformation across multiple domains. He said the armed forces were swiftly embracing modern technologies, with innovation, indigenisation and adaptability remaining central to this shift towards technology-enabled, multi-domain operations.
Reaffirming the military’s resolve, the COAS/CDF said the Pakistan armed forces remained fully prepared to safeguard the country’s sovereignty and territorial integrity against all threats.
According to a statement issued by the Inter-Services Public Relations (ISPR), the army chief was briefed on key operational, training and administrative matters of Bahawalpur Corps, with a particular focus on preparedness for multi-domain warfare.
During the visit, Field Marshal Asim Munir observed a high-intensity field exercise, ‘Steadfast Resolve’, conducted at Khairpur Tamewali. The exercise showcased the integration of niche and emerging technologies, including unmanned aerial systems, advanced surveillance tools, electronic warfare assets and modern command-and-control mechanisms.
Commending the troops, the army chief lauded their high morale, professional competence and operational readiness, stressing the need to maintain optimal preparedness to meet future battlefield and security challenges.
Earlier, the COAS inaugurated the ROHI E-Skills Learning Hub (STP), aimed at promoting digital skills and expanding learning opportunities for students, particularly from southern Punjab and other regions. He also inaugurated the APS Abbasia Campus, reaffirming the Pakistan Army’s commitment to quality education and character building.
Later, he visited the EME Regional Workshop, where he was briefed on maintenance regimes designed to sustain modern military platforms through advanced technologies, indigenisation initiatives and enhanced combat support measures.
Meanwhile, Prime Minister Muhammad Shehbaz Sharif will meet and address the country’s major exporters and business figures Friday (today). The prime minister will express his views on reforms, economic discipline and restoring the confidence of industrialists.
