After years of staggering losses and bailout after bailout, Pakistan International Airlines (PIA) finally has a new owner. The government managed to pull off a successful sale in Islamabad, attracting real bidders this time around, something they just couldn’t do last year.
PIA was once a symbol of national pride. People used to look up at those planes and feel something. But lately? It’s just been a story of mounting debt and endless financial trouble.
On December 23, the Arif Habib consortium walked away with the winning bid of a whopping $135 billion. Lucky Cement and Airblue were the other contenders, but in the end, Arif Habib outbid everyone.
How did the deal take place?
Let’s break down how it happened.
At first, three groups were in the running: Lucky Cement, led by well-known industrialist Muhammad Ali Tabba; the Arif Habib group, a big player in Pakistan’s financial world; and Airblue, a major private airline.
In the first round, Lucky Cement offered Rs 101.5 billion, Airblue put up Rs. 26.5 billion, and Arif Habib set the pace with Rs115 billion.
That became the new baseline for the second round. Airblue dropped out. Lucky Cement raised the stakes to Rs 134 billion, but Arif Habib topped it, sealing the deal at Rs 135 billion.
Arif Habib wins the bid
After the win, Arif Habib called the move a step forward for investment in Pakistan. “PIA is our national institution,” he said. “It’s seen better days, once ranked number two in the world. The staff knows their stuff.” He told Geo News he’s open to bringing in foreign airlines once the transaction wraps up.
The deal hands over 75% of PIA’s shares to the winning group, with 90 days to snap up the remaining 25%. A big chunk of the sale money, 92.5%, gets reinvested into the airline, and Arif Habib will need to pump in another Rs 80 billion over the next five years.
The reaction from the government was swift. Prime Minister Shehbaz Sharif called it “a historic day for Pakistan.” On X (formerly Twitter), he said the competitive bidding showed real trust in the country’s future. “Pakistan is the ultimate winner,” he wrote.
Interior Minister Mohsin Naqvi agreed, saying, “Pakistan has won today. We’re all looking forward to flying PIA again.” Finance Minister Muhammad Aurangzeb hoped the sale would spark more investment, especially from local players.
Economist Khaqan Najeeb, speaking to Geo News, said it’s a good start, Pakistan just managed to privatise a major institution after nearly two decades.
Alhamdolilah! A historic day for Pakistan 🇵🇰
It was our firm commitment to the people of Pakistan that speedy and concrete steps would be taken to privatise loss-making state-owned enterprises that have been a burden on the economy.
The successful completion of the transparent…
— Shehbaz Sharif (@CMShehbaz) December 23, 2025
What you need to know about PIA
PIA’s story started back in 1946, founded by Mirza Ahmad Ispahani and Adamjee Haji Dawood in Calcutta. After independence, it became Pakistan’s main airline for both domestic and international routes. In 1960, PIA was the second Asian airline to fly Boeing 707 jets. For a while, it really was a world-class carrier.
But over time, problems piled up: safety issues, constant cancellations, chaos, and debt. By 2023, PIA had lost over Rs 75 billion in a year, with total liabilities at a jaw-dropping Rs 825 billion.
In the end, privatisation was the only way out. The national airline’s long, turbulent journey just took a sharp new turn.
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