Pakistan International Airlines (PIA) has been sold to a consortium of investors led by Arif Habib Limited, a securities brokerage house based in Karachi, with the participation of industrial group Fatima Fertilizer and AKD Group, a local conglomerate
The Pakistani government had put the flag carrier up for sale after several years of massive losses.
The sale was conducted through an auction process that saw several competing bids, with the winning consortium offering 135 billion Pakistani Rupees (US$482 million) for 75% of the airline.
The national carrier was one of the state-owned companies that Pakistan was urged to divest itself of by the International Monetary Fund (IMF), as part of a program to stabilize the country’s financial situation.
An earlier attempt to sell Pakistan International Airlines was cancelled after the airline managed to attract only one bidder. On the latest occasion, though, other Pakistani companies, such as Lucky Cement and airblue, a privately-owned competitor, placed bids for the flag carrier.
The airline’s new owners are expected to take full control of the airline from April 2026. Other Pakistani companies, such as the Fauji Fertiliser Company, may also join the acquiring consortium at a later date. In this regard, PIA’s acquirers will have an option to buy the remaining 25% of the airline within a few months.
Under the terms of the bid, the Pakistani government will receive 10 billion Pakistani Rupees in cash (about 7.5% of the bid), with the rest being injected in the airline to restructure and revive it. The new owners will also have to commit to retain all employees, with contracts unchanged, for a period of at least 12 months after the transaction closes.
In addition to its dire financial situation and stack of debt, Pakistan International Airlines faces operational challenges and the recovery of trust by both the public and regulators.
In 2020, Pakistan International Airlines was banned from European airspace after it was discovered, following a crash that killed 97 people, that a large number of Pakistani pilots were flying with fraudulent licenses. It was only in December 2024 that Pakistan International Airlines ban was lifted by the European Aviation Safety Agency (EASA).
It would then take another 10 months for British aviation authorities to lift their own five-year ban so that PIA could reinstate its nonstop flights to the UK, one of its major international markets.
According to the ch-aviation database, as of December 2025, Pakistan International Airlines is operating a fleet of 19 active aircraft. This figure includes 11 A320s, two ATR42-500 turboprops and six B777s, in different versions.