A consortium led by ‘Arif Habib Corporation’ won the bid for a 75% stake in PIA with an offer of Rs135 billion, emerging victorious in the country’s second televised privatization attempt of the airline. Despite the high headline figure, officials clarified that only a small portion will come directly to the government.

According to the deal structure, Pakistan will receive about Rs.10 billion in immediate cash, while the majority of the funds will be reinvested into PIA to stabilize its operations.

Prime Minister’s Adviser on Privatization Muhammad Ali said the government will eventually receive Rs55 billion overall, while nearly Rs125 billion will be directed into the airline for debt settlement, fleet modernization, and operational improvements.

Also Read: PIA finally sold as Arif Habib Consortium wins auction with Rs135 billion bid

Ali rejected criticism that PIA was sold below its real value, dismissing claims comparing the bid price to the worth of the airline’s aircraft as misleading. He stressed that the valuation must consider PIA’s liabilities, long-standing losses, and urgent need for fresh capital.

Officials maintained that the privatization’s primary goal is to restore efficiency, improve management, and reduce reliance on government bailouts, rather than generate short-term revenue.

The government retains a 25% stake, ensuring strategic interest in PIA while allowing private management to run day-to-day operations. Authorities expect the new owners to assume control by April 2026, once regulatory approvals and legal formalities are completed.