KARACHI: The Arif Habib Group consortium will acquire the remaining 25 percent stake in Pakistan International Airlines (PIA), a move that will grant it full ownership of the national flag carrier.
Shahid Ali Habib, Chief Executive Officer of Arif Habib Limited, told The News that the consortium has made up its mind to purchase the outstanding 25 percent shares.
According to him, the formal decision is expected in April, after which the payment will be completed within 12 months.
He said that following the acquisition of 100 percent shares, PIA will operate entirely as a private entity and will no longer be subject to government-nominated board members.
It may be recalled that in December last year, the Arif Habib consortium acquired a 75 percent stake in the Pakistan International Airlines for Rs135 billion.
The government’s objective behind privatising the loss-making airline was to make it profitable through operational restructuring, expansion of its aircraft fleet and improvements in passenger services.
After the privatisation of 75 percent stake in December, the government granted the consortium a 90-day deadline to purchase the remaining shares, valued at approximately Rs45 billion, with the final date set for the end of April.
Under the agreement finalised in January, a 12-month period has been allowed for the transfer of funds, making the transaction financially viable.
The successful consortium comprises Fatima Fertilizer with a 34.1 percent share, Fauji Fertilizer Company holding 33.9 percent, Lake City with 16 percent and AKD Group along with The City School holding a combined 16 percent stake.
Shahid Ali Habib said that PIA’s improvement plan includes upgrading staff performance and ticketing services, strengthening safety and security standards, and increasing flight frequency on profitable routes.
