Pakistan has sold a majority stake in its national flag carrier, Pakistan International Airlines, to a consortium led by the Arif Habib Group after it submitted the highest bid of about $482 million, officials said Tuesday.
The winning bid of 135 billion Pakistani rupees was made for a 75% stake in the airline as part of the government’s long-delayed privatization drive aimed at reducing losses at state-owned enterprises and easing pressure on public finances. The government will retain the remaining 25% stake.
The Arif Habib Group is one of Pakistan’s largest business conglomerates, with interests spanning financial services, cement, steel, energy and fertilizers, and is best known for its strong presence in capital markets through listed companies and investment firms.
Pakistan International Airlines has struggled for years with mounting debt, operational inefficiencies and political interference, relying heavily on government support to stay afloat.
Officials said the sale is subject to regulatory approvals and completion of legal procedures, adding that the new ownership is expected to improve management and restore the airline’s financial stability. (Newswire)