ISLAMABAD: PIA handover delay enters sixth month, even after completion of milestone privatization transaction with the successful bid group unable to exercise control over Pakistan International Airlines. Issues related to regulatory clearance and NOC delays remain hurdles to this process as concerns regarding the timing of this major privatization case arise.
The timeline failures tell their own story. However, the group had previously been scheduled to take control by April 2026 and had committed itself to a reinvestment of Rs 125 billion for fleet upgrades and service expansion. That April deadline came and went. The Privatisation Commission Chairman Muhammad Ali then said financial close was expected the following month. May passed too. Now, June 30 is the new target.
The failure to receive essential No Objection Certificates from various bodies is one of the major factors responsible for the delay. Administrative inefficiencies have also contributed to the delay.
The Privatisation Commission spokesperson confirmed Focus Pakistan, that the process required more than 40 NOCs in total, domestic and international. Authorities have already secured most of the required approvals and expect to obtain the remaining clearances within the next few days.
Rs 83 Billion Sitting in Limbo
The NOC logjam carries a direct financial consequence. The consortium agreed to deposit approximately Rs 83–85 billion with the Privatisation Commission once all clearances land and that payment has not moved. The Privatisation Commission had originally structured the Rs 135 billion winning bid so that Rs 10.125 billion would go to the national exchequer, with the remaining Rs 125 billion payable in tranches two-thirds due within 90 to 120 days, and the balance within a year. That schedule pointed squarely at late April as the critical payment milestone. It passed without the transfer.
The consortium has submitted a standby letter of credit and a bank guarantee to the Privatisation Commission for the government’s remaining 25% stake, priced at Rs 45 billion bringing the total acquisition value to Rs 180 billion. The financial readiness exists. The regulatory paperwork does not.
Who Owns PIA Right Now?
The ownership picture itself has grown more complicated in recent weeks. The consortium acquired the remaining 25% shareholding from the government, taking private sector ownership in PIA to 100%. On paper, the Arif Habib-led group now owns the entire airline. This is because the government has not given up management control; hence, the new owners own PIA without having control over its operations, which is a rather uncommon scenario.
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The syndicate comprises of Arif Habib Corporation Limited, Fatima Fertilizer Company Limited, Fauji Fertilizer Company Limited, AKD Group Holdings, City Schools, and Lake City Holdings, among others, with all these entities combining to form one formidable alliance following the completion of the bidding process.
What the New Owners Promised
At stake here is more than just the bureaucratic process. PIA’s net profit in 2024 amounted to Rs 26.2 billion, whereas for the first half of 2025, it was Rs 6.8 billion, an impressive turnaround that would have been difficult without shifting the company’s historical debts to its newly established PIA Holding Company. The consortium aims to take advantage of this clean slate. Currently, PIA has a fleet of 18 aircraft, 12 leased and 6 belonging to the company itself, but the plan is to raise the fleet size to 38 or even more.
No such major privatisation by Pakistan’s state-owned enterprises has taken place in almost two decades. This transaction, made under pressure from the IMF program, assumes importance for reasons more than just financial. Every delay adds to the impression that institutional lethargy wins despite the obviousness of the commercial case.
The Privatisation Commission maintains that the consortium remains committed to the deal and plans to complete the transfer by the end of June. Sources within the government told Focus Pakistan that, the remaining NOCs will clear within days. Pakistan has heard that before. June 30 will determine whether it hears something different.
