Business Desk 
Dec 31, 2025
The Cabinet Committee on Privatisation (CCOP) has cleared a Rs135 billion proposal from a consortium led by Arif Habib Corporation for the acquisition of a 75% stake in Pakistan International Airlines (PIA) on Wednesday.
According to The News, the proposal will now be referred to the federal cabinet as part of the ongoing privatisation of the national flag carrier.
The announcement was made at a meeting led by Deputy Prime Minister Ishaq Dar, with presentations by the Ministry of Privatisation on the follow-up process.
The Arif Habib-led consortium, consisting of Fatima Fertiliser, AKD Group, City Schools, and Lake City Holdings, offered the highest rate on December 23 and was announced as the winner of the bidding process.
Dar has called on ministries and government departments to facilitate fast-tracking so that PIA can experience its ‘glory days’ soon.
After the acquisition, the new management revealed that it had planned to transform the operations of the airlines, including the renovation of the aircraft cabins, the renovation of the aircraft check-in counters, the improvement of the schedules of the aircraft, and the expansion of the current aircraft fleet from 19 to 64 aircraft within eight years.
The first phase will comprise the addition of 38 aircraft to the current fleet of narrow- and wide-body aircraft, and the second phase will comprise the rest of the aircraft expansion.
PIA’s new administration is also planning to improve their international flights, especially within the UK, US, and Canadian markets.
The consortium plans to invest $400 million to cover initial losses and modernise the airline. While losses are expected in the initial years, management projects reasonable returns within 10 years and may explore buying the remaining 25% government stake or partnering with a foreign airline for technical expertise.
