What PIA owns and what was sold in Rs135bn privatisation deal

ISLAMABAD: The federal government has sold the national flag carrier, Pakistan International Airlines (PIA), to a Arif Habib Group for Rs135 billion, while the total value of the airline’s assets is said to be significantly higher.

Details in this regard have now emerged.

According to official sources, the total value of PIA’s assets sold to the Arif Habib Group is estimated to be between Rs150 billion and Rs190 billion.

The government offered five properties of PIA, along with all aircraft, domestic and international routes, and operational assets, for privatisation.

The Privatisation Commission said that PIA’s total assets are valued between Rs150 billion and Rs190 billion.

The national airline currently has 34 aircraft, of which 18 are operational and 16 are grounded. PIA operates 70 flights daily on 45 international and 25 domestic routes.

Official figures show that PIA employs 6,500 staff members, who will be provided job protection for one year.

The airline’s daily revenue ranges between Rs600 million and Rs800 million, while its total revenue from January to June 2025 stood at Rs112 billion.

The government has sold 75 per cent shares of PIA, while the successful bidder will be given 90 days to purchase the remaining 25 per cent stake.

Several concessions have been extended to the successful buyer.

Under these incentives, no sales tax will be payable on the purchase of new aircraft. The buyer will also not be required to pay PIA’s outstanding dues to the Federal Board of Revenue (FBR) and aviation authorities.

PIA’s liabilities include Rs26 billion owed to the FBR and Rs7 billion in aviation-related dues.

The Arif Habib consortium has acquired a total of five properties, including PIA offices in Karachi, Lahore and Islamabad.

Under the agreement, the Arif Habib consortium will immediately pay Rs10.12 billion to the government of Pakistan, while the remaining amount will be spent on improving PIA.

It is worth noting that the Arif Habib consortium secured PIA through a successful bid of Rs135 billion in the privatisation auction, acquiring 75 per cent shares of the national airline.

Following the successful bid, Arif Habib said that the number of aircraft would be increased to 65, and new employment opportunities would be created.