Arif Habib Group’s PIA bidding: Who is Arif Habib?

ISLAMABAD: When the news broke that the Arif Habib Group had acquired 75 per cent of Pakistan International Airlines (PIA) shares for PKR 13.5 billion, the spotlight naturally turned to the man behind the group: Arif Habib. But who is the business tycoon now tasked with reviving Pakistan’s national airline?

Arif Habib is a renowned Pakistani entrepreneur and investor, best known for building the Arif Habib Group, a diversified conglomerate with interests spanning financial services, real estate, energy, and manufacturing. Over the years, he has earned a reputation for strategic investments, transparency, and long-term vision, playing a pivotal role in shaping Pakistan’s capital markets.

Founded in 1955, PIA has long been a symbol of national pride. According to recent reports, Pakistan owns a total of 33 PIA aircraft, of which only 22 are operational, with around 6,500 employees managing the fleet, serving up to 97 destinations across domestic and international routes. Over the years, the airline had struggled under government ownership, operating at significant losses and requiring continuous state support.

The Arif Habib Group-led consortium emerged as the highest bidder in PIA’s privatisation, placing a record-breaking bid of Rs135 billion in the final round of open bidding. This bid outpaced the Lucky Group consortium, which offered Rs134 billion, making it one of the most competitive privatisation exercises in Pakistan’s aviation history. The successful bid marks the government’s second attempt at privatising PIA after last year’s effort failed due to insufficient bids.

In the initial rounds, the Arif Habib consortium had consistently led the bidding, offering Rs121 billion and Rs116 billion in the first and second rounds, respectively, demonstrating strong investor interest. The government had set a minimum reserve price of Rs100billion, aiming to open new avenues for private investment while reducing the financial burden of the loss-making national carrier, which the government currently owns approximately 96 per cent of the total.

The privatisation framework allows the successful bidder to acquire a controlling 75 per cent stake, with the option to purchase the remaining 25 per cent within a stipulated timeframe. Of the proceeds from the 75 per cent stake, two-thirds must be paid within 90 days, and the rest over the course of a year. While the government directly receives only 7.5 per cent, the majority of the proceeds are earmarked for reinvestment in PIA to modernise the fleet, improve operational performance, and enhance service quality.

Speaking about the acquisition, the Arif Habib Group said to the HUM News, “Today, Pakistan has won. PIA’s good days are back. New investment opportunities will open, and jobs will be created.” The group emphasised that transparent privatisation will boost foreign investor confidence, restore PIA’s reputation, and renew trust among both the public and investors.

Experts note that this historic sale could prevent billions of rupees in annual losses previously covered by the government. The airline’s market value has improved, with equity moving from a negative Rs45 billion last year to Rs30 billion following the transfer of liabilities. The deal also includes tax exemptions and the transfer of certain liabilities to the holding company, making it an attractive investment.

For Arif Habib, this acquisition is more than just a business deal. It is a mission to revive a national icon, blending PIA’s rich legacy with modern investment, innovation, and strategic management. With a vision to rebuild the airline as a world-class carrier, the Arif Habib Group aims to strengthen Pakistan’s aviation sector, create jobs, and enhance global connectivity.