PTBP Web Desk
The PIA privatisation process has been described as a “success for Pakistan” by leading industrialist Arif Habib, who said the landmark transaction would help restore investor confidence and open the door to fresh domestic and foreign investment in the country.
Speaking after the conclusion of the privatisation process on Tuesday, Habib—who is also the Chief Executive of Arif Habib Corporation Limited (AHCL)—said the sale of a majority stake in Pakistan International Airlines (PIA) marked a turning point not just for the national carrier, but for Pakistan’s broader economic outlook.
Arif Habib emphasised that successful completion of the PIA privatisation sends a strong and positive signal to investors who have remained cautious in recent years. According to him, the transparent bidding process and the strong private-sector response demonstrate renewed confidence in Pakistan’s reform trajectory.
He noted that the transaction shows Pakistan is capable of executing complex privatisation deals in a competitive and credible manner. This, he added, would encourage other investors to consider opportunities in sectors that have traditionally remained under state control.
Economic analysts believe that such high-profile privatisations are closely monitored by international markets and multilateral lenders. In this context, the PIA deal is being seen as an important test case for Pakistan’s commitment to structural reforms.
While acknowledging the airline’s challenges, Habib underlined that PIA still carries a strong legacy and possesses a skilled workforce capable of supporting a turnaround under fresh capital injection.
“PIA has enjoyed a fabulous legacy and was once ranked the second-best airline in the world,” he said, recalling a time when the national carrier was regarded as a model airline in the region. He added that many of PIA’s employees remain highly competent and have a deep understanding of airline operations.
This emphasis on human capital is significant, as concerns over job security and workforce restructuring have often surrounded privatisation efforts. Habib’s remarks were aimed at reassuring employees that their expertise would be central to the airline’s revival.
The comments came shortly after a consortium led by AHCL emerged as the winning bidder for a 75 percent stake in PIA, submitting a Rs135 billion bid. The offer was notably higher than the government’s initial minimum price of Rs100 billion and the base price of Rs115 billion at which the auction commenced.
The premium offered by the consortium has been widely interpreted as a vote of confidence in PIA’s long-term potential. It also reflects expectations that operational reforms, better governance, and targeted investment could transform the airline into a commercially viable entity.
