KARACHI, Pakistan — Arif Habib, the businessman leading the consortium set to take a controlling stake in Pakistan International Airlines, said Friday that staff careers will be tied to results and the carrier’s identity will not be renamed as the PIA privatisation heads toward closing. He said the airline cannot be rebuilt without restoring discipline and profitability, Jan. 2, 2026.
The Arif Habib-led group emerged as the top bidder for a 75% stake with a Rs135 billion offer, and officials expect the airline to be run by the new owners from April 2026 after required approvals and a financial close period, according to a Reuters report on the planned handover.
PIA privatisation: performance first, brand stays
Habib’s message to employees has been blunt: “The message to employees is clear: the future will depend on performance,” he said, while also stressing that the agreement does not allow the airline to be renamed, according to Samaa TV’s account of his Karachi comments. He also said employees would be protected as management works to return the airline to profit.
In separate remarks, Habib repeated that “only those who perform” will remain and said PIA will continue to prioritize Hajj and Umrah operations as it tries to rebuild customer trust, according to The Express Tribune’s report on his performance warning.
Service fixes before big bets
Habib has pitched the turnaround as starting with changes passengers can see. In an interview, he said, “We will renovate the check-in counters and the cabins,” and added: “We will also ensure the punctuality of flights,” describing on-time operations as a prerequisite for changing the airline’s culture, according to Arab News’ interview with Habib after the sale.
Approvals, investment and employee protections
Pakistan’s Cabinet Committee on Privatisation has endorsed the Rs135 billion bid and forwarded the transaction to the federal cabinet for final approval. The consortium has also committed to invest an additional Rs80 billion over the next five years, according to a Profit by Pakistan Today report on the approval process.
Under terms outlined by privatisation officials for the PIA privatisation, the state will retain a 25% stake and receive about 10 billion rupees in cash upfront, while the buyer must retain all employees for 12 months after the transaction, with existing contracts unchanged.
Why this PIA privatisation has been years in the making
The latest deal follows a stalled effort in 2024, when Pakistan rejected a lone bid of 10 billion rupees for a 60% stake because it fell far below the official minimum price, Reuters reported in November 2024.
PIA’s sale prospects also improved as safety restrictions eased. The carrier resumed direct flights to Europe in early 2025 after the EU’s aviation safety agency lifted a multiyear ban, according to an Associated Press report on the return of European routes. By September 2025, PIA reported a rare first-half pre-tax profit as the push for PIA privatisation gathered pace, according to a Reuters report on the 2025 profit swing.
Whether the PIA privatisation becomes a lasting turnaround will hinge on execution: improving reliability, investing in the product and enforcing performance standards, while navigating labour sensitivity and meeting deadlines promised to regulators, the government and passengers.
