ISLAMABAD: Pakistan on Tuesday concluded the long-awaited privatization of its loss-making national flag carrier, the Pakistan International Airlines (PIA), with Arif Habib Group emerging as the winning bidder in a process the government says will end decades of state-funded bailouts and help revive the loss-making airline.
The consortium, led by Arif Habib Group, secured a 75 percent stake in PIA for Rs135 billion ($482 million) after several rounds of bidding, valuing the airline at Rs180 billion ($643 million).
The sale marks the South Asian country’s most aggressive attempt in decades to reform the debt-ridden carrier, which has accumulated more than $2.8 billion in financial losses.
Following the announcement of successful bidder, Muhammad Ali, chairman of the Pakistan Privatization Commission, said the biggest advantage fo the sale would be that the government will not have to fund the airline.
“It will have new planes and all Pakistanis, who want to travel around the world directly, which we go through transits via different airports today, all of that will be improved, service quality will be better and overall, there will be an impact on employment and GDP [gross domestic product] growth in the country,” he said.
