| KARACHI: The privatization of Pakistan International Airlines (PIA) is on track to be finalized by the first week of October 2024, according to Arif Habib, Chairman of Arif Habib Group.
Speaking at Naya Nazimabad Gymkhana, Habib shared his confidence in the timeline, stating, “We expect the bidding process for PIA to conclude by early October 2024.” He emphasized that the new owner would need to add at least 20 aircraft to the airline’s fleet to enhance operations and drive profitability.
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Discussing the ownership structure, Habib mentioned that prospective buyers are aiming for a 75% stake in PIA to secure majority control. However, under the terms of the privatization, the airline cannot be resold within three years of the acquisition.
One of the biggest hurdles for PIA is its massive debt, which totals PKR 800 billion. Habib explained that PKR 600 billion of this debt will be transferred to a holding company, while PKR 200 billion will be assumed by the buyer. He highlighted that much of the debt comprises tax liabilities and dues to the Civil Aviation Authority, adding that allowing buyers extended time for repayment could help ease the burden.
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Habib remains optimistic about PIA’s potential, noting that operational improvements, alongside resolving debt and employee-related issues, could transform the struggling airline into a profitable entity. The completion of the privatization process by October 2024 is expected to mark the beginning of a new chapter for PIA, positioning it for future growth. |
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