Arif Habib, Chairman of the Arif Habib Group, has announced that the privatization of Pakistan International Airlines (PIA) is on track to be finalized by the first week of October 2024.
Speaking to journalists at the Naya Nazimabad Gymkhana, Habib expressed optimism about the timeline for concluding the PIA bidding process.
Habib highlighted that the prospective buyer would need to introduce at least 20 new aircraft to PIA’s fleet to ensure effective operations.
He is confident that with strategic management, PIA can transition from its current financial losses to profitability.
Regarding the ownership structure, Habib noted that potential buyers are looking to acquire 75% of PIA’s shares to secure majority control. He also mentioned that the airline cannot be sold again within three years of privatization.
One of the significant hurdles facing PIA is its massive debt, totaling Rs 800 billion, including interest.
Habib explained that Rs 600 billion of this debt will be transferred to a holding company, while the remaining Rs 200 billion will be the responsibility of the new owner.
He emphasized that resolving debt issues, including tax liabilities and civil aviation dues, with flexible repayment terms could significantly aid in the airline’s recovery.
Habib reassured that PIA remains operationally viable and, if debt and employee issues are addressed post-takeover, it could quickly become a profitable enterprise.
The anticipated conclusion of the privatization process by October 2024 could mark the beginning of a new phase of growth for PIA.