Story perspectives

Pakistan Sells 75% of PIA to Revitalize Airline

12/26/2025

Summary

Story summary

Pakistan privatized its national carrier, Pakistan International Airlines (PIA), selling 75% to a consortium led by Arif Habib Corporation for Rs135 billion ($482 million).
The government will retain 25% and receive Rs10.1 billion in cash upfront, with the majority reinvested into PIA for improvements.
The sale is part of reforms tied to the International Monetary Fund (IMF) and aims to modernize the fleet and restore PIA’s competitiveness by April 2026.

History

Historical Context

In February 1987, the British government privatized British Airways, raising £1.1 billion and marking a pivotal shift in the airline industry. This move, part of a broader privatization trend under Prime Minister Margaret Thatcher, aimed to enhance operational efficiency. Similarly, Pakistan's recent $482 million privatization of Pakistan International Airlines reflects this global shift, seeking to modernize and improve competitiveness in its aviation sector.

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Story summary

Pakistan privatized its national carrier, Pakistan International Airlines (PIA), selling 75% to a consortium led by Arif Habib Corporation for Rs135 billion ($482 million).
The government will retain 25% and receive Rs10.1 billion in cash upfront, with the majority reinvested into PIA for improvements.
The sale is part of reforms tied to the International Monetary Fund (IMF) and aims to modernize the fleet and restore PIA’s competitiveness by April 2026.

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