Pakistan Sells National Airline Under IMF Pressure: Who Bought PIA & For How Much?

According to officials, 92.5 per cent of the money raised from the sale will be spent on restructuring and improving the airline.

By : ABP Live News | Updated at : 24 Dec 2025 12:22 AM (IST)

PIA has remained in losses for years, weighed down by operational inefficiencies and financial liabilities.
Source : IANS
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Pakistan’s loss-making national carrier Pakistan International Airlines has been sold after years of financial distress, with the Arif Habib Group emerging as the highest bidder. The airline’s privatisation marks a major step in Islamabad’s efforts to reform state-owned enterprises under economic pressure. Officials say most of the proceeds from the sale will be channelled into reviving the airline, which has struggled with mounting debt, shrinking operations and persistent mismanagement.

Arif Habib Group Wins PIA Bid

The Arif Habib Group secured Pakistan International Airlines by placing the highest bid of 135 billion Pakistani rupees. Competing bids came from Lucky Cement, which offered 101.5 billion rupees, and airline operator Airblue, which bid 26.5 billion rupees. The auction involved the sale of 75 per cent of PIA’s shares, as part of the government’s privatisation plan.

PIA has remained in losses for years, weighed down by operational inefficiencies and financial liabilities. Officials said the bidding process drew domestic investors, which the government views as a positive signal for the economy.

Most Sale Proceeds To Fund Airline Revival

According to officials, 92.5 per cent of the money raised from the sale will be spent on restructuring and improving the airline. A report by Pakistani daily Dawn said PIA currently operates a fleet of 32 aircraft, including Airbus A320s and A330s, as well as Boeing 737s and 777s.

The airline’s decline has been attributed to a shortage of flights, weak management and a heavy debt burden, which have steadily eroded its competitiveness in the aviation market.

Government Sees Privatisation As Investment Signal

Pakistan’s Finance Minister Muhammad Aurangzeb thanked the Prime Minister’s advisers and their teams for overseeing the auction process, saying it had taken considerable effort to reach this stage. He noted that all bidders were domestic entities, describing this as an encouraging development.

Aurangzeb said the privatisation was expected to increase local investment, which could in turn attract foreign investors. Prime Minister Shehbaz Sharif’s advisers also expressed hope that PIA’s sale would open new avenues for investment.

Muhammad Ali, adviser to PIA’s Privatisation Committee, said the government’s objective was not merely to sell the airline, but to make it financially independent and sustainable.

The privatisation of PIA forms a key part of Pakistan’s 7-billion-dollar bailout programme with the International Monetary Fund, which requires the government to either reform or privatise loss-making state-owned enterprises and reduce official control over them.

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Published at : 23 Dec 2025 10:02 PM (IST)
Tags :
PIA Pakistan IMF Arif Habib Group

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