Islamabad (Ehsan Bukhari / Special Reporter)
Pakistan’s federal government, through the Privatization Commission, has sold Pakistan International Airlines (PIA) to the Arif Habib Group for $480 million (approximately Rs 135 billion), sources said on Monday.
According to sources, the Arif Habib Group is expected to generate revenues of around Rs 288 billion within a year of the acquisition. After meeting government dues amounting to Rs 55 billion and other expenditures, the group is projected to earn an estimated profit of Rs 153 billion in the first year.
Sources further claim that the Privatization Commission sold PIA at a price of $481 million. PIA’s reported daily revenue stands at approximately Rs 800 million, which could translate into annual earnings of around Rs 288 billion for the new owners.
Meanwhile, PIA’s total asset valuation is said to be around Rs 190 billion (approximately $670 million). A single Boeing 777 aircraft is estimated to be worth nearly $400 million. The airline currently has 18 operational aircraft and 16 grounded planes, with a workforce of about 9,000 employees. In 2024, PIA’s total revenue reportedly stood at Rs 204 billion.
Sources allege that the airline was sold at a price lower than its asset value, potentially allowing the Arif Habib Group to secure substantial profits within a short period. While PIA employees have reportedly been given job security for one year, concerns remain that workforce reductions may follow in the coming year as part of cost-cutting measures.
According to sources, reducing expenses, increasing revenue, and boosting share value are expected to be among the new owners’ top priorities, raising apprehensions about possible layoffs as part of a broader restructuring strategy.