ISLAMABAD – In a move that brings the country’s most anticipated sell-off closer to completion, the Privatisation Commission Board has formally approved the inclusion of Fauji Fertiliser Company (FFC) into the consortium set to acquire Pakistan International Airlines (PIA).
The decision was reached during a high-level meeting chaired by Muhammad Ali, Adviser to the Prime Minister on Privatisation. The board confirmed that FFC—one of Pakistan’s most financially robust industrial giants—fulfils all regulatory and eligibility requirements to join the group led by Arif Habib Corporation Limited (AHCL).
Strengthening the Bidding Power The FFC PIA Consortium now represents a formidable alliance of local corporate powerhouses. While FFC had initially withdrawn from the solo bidding process last year, its re-entry into the winning group is seen as a strategic “shot in the arm” for the deal. The expanded consortium now includes:
- Arif Habib Corporation (Lead Member)
- Fauji Fertiliser Company (FFC)
- Fatima Fertilizer
- Lake City Holdings
- The City School & AKD Group
A Milestone for the National Carrier The Pakistan International Airlines sale is a cornerstone of the government’s broader economic agenda, backed by the IMF’s reform program. The Arif Habib-led group had previously secured the winning bid of Rs. 135 billion for a 75% stake in the airline.
With the Board’s endorsement, the consortium is now positioned to potentially acquire the remaining 25% stake from the government. If the Federal Cabinet grants final approval, the private consortium would hold full control of PIA, replacing public-sector management. This transition to private-sector control is expected to inject much-needed capital into the airline, which has struggled with multi-billion rupee losses for decades. What Lies Ahead? The recommendation now moves to the Cabinet Committee on Privatisation (CCoP) and the Federal Cabinet for final approval. For the Pakistani public, this update signals a major shift in aviation sector reforms in Pakistan. The government hopes that the infusion of private management will result in:
- Expanded Fleet: Acquisition of new aircraft to restore international routes.
- Improved Service: A total overhaul of cabin services and ground handling.
- Financial Stability: Removing the massive debt burden from the national exchequer.
As the deal moves toward its “first closing” in April, all eyes are on the federal cabinet to provide the final green light for what could be Pakistan’s largest privatisation.