The PIA privatization decision has entered a critical but cautious phase as businessman Arif Habib clarified that no final call has been made on acquiring the remaining 25% shares of Pakistan International Airlines. While the Arif Habib Consortium already holds a controlling 75% stake in the national carrier, the move toward full ownership is still under review and far from guaranteed.
Speaking during a recent television programme, Arif Habib explained that speculation about immediate 100% acquisition was premature. He emphasized that the consortium is currently focused on internal planning, strategic evaluation, and consultations with international experts before taking such a major step. This statement has added a new layer of realism to the ongoing debate surrounding PIA’s future.
Current Status of PIA Ownership
The Arif Habib Consortium secured a 75% stake in PIA after winning the privatisation bid with an offer of Rs135 billion, marking one of Pakistan’s most significant privatisation deals in recent years. This transaction gave the consortium management control of the airline while the government retained a 25% shareholding.
Since then, discussions around the PIA privatization decision have intensified, with reports suggesting that the remaining stake might be acquired within three months. However, Arif Habib’s remarks make it clear that the process is still exploratory rather than definitive.
A 90-Day Evaluation Window
According to Arif Habib, the consortium has a 90-day window to assess whether full ownership aligns with its long-term business objectives. During this period, the group is reviewing operational, financial, and regulatory aspects of PIA. We are preparing a comprehensive business plan and consulting international advisors on how to revive the airline,he said.
This cautious approach reflects the complexity of the PIA privatization decision. Acquiring the remaining shares would not only involve financial considerations but also long-standing challenges related to PIA’s debt, workforce structure, fleet modernization, and route profitability.
Focus on Revival Strategy First
Rather than rushing toward full ownership, the consortium appears intent on stabilizing and restructuring PIA under its current majority stake. Industry analysts believe this is a pragmatic move. Turning around a loss-making national airline requires clear reforms, cost controls, and improved governance, all of which take time.
The PIA privatization decision, therefore, is closely tied to the success of initial reforms implemented during this transitional phase. If early indicators show operational improvement and reduced losses, the case for acquiring the remaining 25% may become stronger.
Government’s Stake and Financial Implications
From the government’s perspective, selling the remaining shares could generate an additional Rs45 billion in revenue and fully transfer responsibility for the airline to the private sector. Full privatisation would also relieve the state of ongoing financial support and political pressure associated with running a national carrier.
However, officials have maintained that any further sale would depend on mutual agreement and regulatory approvals. The government has welcomed private sector involvement but remains cautious about ensuring transparency and protecting national interests.
Market Reaction and Investor Sentiment
The uncertainty surrounding the PIA privatization decision has generated mixed reactions in the market. Some investors view the consortium’s measured stance as a sign of responsible corporate governance. Others, however, were expecting a quicker move toward complete privatisation to unlock the airline’s full restructuring potential.
Aviation experts note that global airlines undergoing successful turnarounds often do so under stable ownership with clear accountability. Whether that stability comes with 75% or 100% ownership remains an open question in PIA’s case.
Challenges Ahead for PIA
Even with majority private ownership, PIA faces significant hurdles. These include restoring passenger confidence, improving on-time performance, renegotiating aircraft leases, and expanding profitable international routes. Labor reforms and legacy liabilities also remain sensitive issues.
The PIA privatization decision cannot be separated from these realities. Full ownership would give the consortium greater freedom to implement tough reforms, but it would also mean assuming full responsibility for risks that have historically plagued the airline.
Over the next few months, attention will remain on how the Arif Habib Consortium manages PIA under its current structure. Any visible improvements in service quality, financial discipline, or route management could influence the final decision on full acquisiti. Arif Habib’s message is clear: the door to 100% ownership is open, but no commitment has been made. The PIA privatization decision will be driven by careful analysis rather than headlines, reflecting a more mature and strategic approach to one of Pakistan’s most high-profile privatisation efforts.
