A consortium led by a Pakistani investment firm acquired a 75 per cent stake in state-run Pakistan International Airlines yesterday during a televised auction, marking a major step in the government’s long-delayed effort to privatize the loss-making national carrier.
The Arif Habib consortium submitted a winning bid of 135 billion rupees ($482 million) for the majority shareholding in PIA, which was once regarded as among the region’s top airlines but has suffered decades of financial losses.
Finance Minister Muhammad Aurangzeb, speaking at the bidding ceremony, said the privatisation process was transparent and competitive. He hoped that the new owners would help revive the airline.
The sale fulfils a long-standing demand by the International Monetary Fund, which has repeatedly urged Pakistan to privatise the airline as part of broader economic reforms tied to bailout programmes.
The auction comes two months after PIA resumed direct flights to Europe following a decision by the European Union Aviation Safety Agency to lift a four-year ban imposed over safety concerns.
Once seen as a model airline, PIA has deteriorated over the years due to political interference and chronic overstaffing. The airline employs about 300 workers per aircraft across its 32 fleet – one of the highest employee-to-aircraft ratios in the industry.
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