The Privatisation Commission has approved the inclusion of Fauji Fertiliser Company in the consortium set to acquire a 75 percent stake in Pakistan International Airlines. This development marks a significant step forward in the high value Rs135 billion transaction, which is now moving closer to its first major payment deadline scheduled for late April.
The board of the Privatisation Commission, chaired by the Prime Minister’s Adviser on Privatisation, confirmed that Fauji Fertiliser Company fulfills all required regulatory and eligibility conditions. With the board’s endorsement secured, the proposal will now be forwarded to the Cabinet Committee on Privatisation for final approval.
The consortium is led by Arif Habib Corporation, which successfully outbid a rival group in December to secure the deal. At the time of the winning bid, it was indicated that additional members could join the consortium later. Under the transaction framework, up to two new participants were allowed, paving the way for Fauji Fertiliser’s entry.
Currently, the expanded group includes Fatima Fertiliser, AKD Group, City Schools, and Lake City Holdings, alongside the lead stakeholder. The first financial closing requires the consortium to pay approximately Rs83.3 billion, representing two thirds of the agreed amount. At that stage, the group must also decide whether to purchase the government’s remaining 25 percent stake at a 12 percent premium.
The transaction is structured to inject nearly Rs124.87 billion directly into PIA, supporting operational stability rather than adding funds to the national treasury. The sale plays a key role in Pakistan’s IMF backed reform programme, especially since the airline had been facing annual losses of around Rs50 billion prior to the agreement.
In a separate development, the Privatisation Commission also recommended revising its fee structure to enhance institutional sustainability and strengthen its reform framework.
