Arif Habib Consortium announced that Fauji Fertiliser Company Limited has joined its consortium, which acquired a 75% majority stake in Pakistan International Airlines with the highest bid of Rs135 billion in an auction held for the privatisation process of the national flag carrier.
The consortium, in its statement issued on Thursday, said the partnership will contribute to the airline’s financial support and corporate expertise. It added that Fauji Fertiliser will also be part of the management structure along with the Arif Habib Consortium. “The consortium will invest Rs125bn in the first year to upgrade ground operations and overall services.”
The Arif Habib Consortium also intends to increase the number of operational aircraft from 18 to 62, the statement said.
A day earlier, Adviser to Prime Minister on Privatisation Muhammad Ali told Reuters in an online interview that the state expects a new owner to be running the airline by April, subject to approvals.
The process now moves to final approvals by the Privatisation Commission board and the cabinet, expected within days, with contract signing likely within two weeks and financial close after a 90-day period to meet regulatory and legal conditions.
The deal was structured to inject fresh capital into the airline rather than simply transfer ownership, he said. “We did not want a situation where the government sells the airline, takes its money, and the company still collapses,” Ali said.