The Pakistani government has finalized the long-awaited privatization of Pakistan International Airlines by selling a 75 percent controlling stake for Rs135 billion. While the deal has been presented as a major step toward reforming the loss-making national carrier, official details show that the government will receive only around Rs 10 billion in net proceeds from the transaction.
The majority stake has been acquired by an Arif Habib-led consortium. The group includes Arif Habib Corporation Limited, Fatima Fertilizer Company Limited, City Schools (Private) Limited, and Lake City Holdings (Private) Limited. The sale brings an end to years of failed and delayed attempts to privatize PIA, which has struggled with heavy losses, mounting debt, and operational inefficiencies.
According to officials, most of the Rs135 billion purchase amount will be used to settle PIA’s liabilities, including outstanding loans and obligations. After adjusting these liabilities, only a small portion of the total amount will flow directly into the government’s account, estimated at roughly Rs. 10 billion. This has raised questions among analysts and the public about the financial benefit of the deal for the state.
Government representatives have defended the decision, saying the goal of privatization was not immediate revenue but long-term relief from financial burden. PIA has relied on repeated government bailouts over the years, placing pressure on public funds.
Authorities believe private sector control will help improve management, reduce losses, and modernize the airline. They argue that ending continuous subsidies is a bigger gain than short term cash.
The deal marks a major shift for PIA, with hopes that private ownership will finally put the airline on a stable and sustainable path.
