Pak’s national airline sold

December 25, 2025

Pakistan has finally gone ahead with the long-pending privatisation of its national carrier, Pakistan International Airlines, marking a major shift in the country’s aviation and economic policy. In a high-stakes auction, a controlling stake in the loss-making airline was sold for Rs 135 billion, ending years of uncertainty over the future of the once-flagship carrier.

The government offered a 75 percent stake in PIA as part of a broader reform programme aimed at reducing fiscal pressure and improving efficiency in state-owned enterprises. Three bidders took part in the process, including a private airline and two business groups. After multiple bidding rounds, a consortium led by the Arif Habib Group emerged as the highest bidder, comfortably outpacing its competitors.

Under the terms of the deal, the winning consortium will take management control of the airline, while the government will retain a 25 percent minority stake for now. The new owners also have the option to purchase the remaining shares within a fixed time period. As part of the agreement, the investor has committed to injecting significant fresh capital over the next few years to modernise the airline, improve service quality and strengthen operations.

A large portion of the proceeds from the sale will be channelled back into PIA itself rather than going directly to the federal exchequer. This money is expected to help stabilise the airline’s finances, address operational bottlenecks and support its revival plan. In recent years, the government had already absorbed a major share of PIA’s debt to make the airline more attractive to investors.

The privatisation comes after decades of financial losses, political interference and operational inefficiencies that severely damaged PIA’s reputation