The Chairman of the Arif Habib Group, Arif Habib has indicated that the privatization of Pakistan International Airlines (PIA) is anticipated to be finalized by the first week of October 2024.

During a discussion with journalists at the Naya Nazimabad Gymkhana, Habib expressed optimism about the timeline for the bidding process, stating, “We expect the bidding for PIA to be completed by the first week of October 2024.”

He highlighted that any potential buyer will need to add at least 20 aircraft to PIA’s fleet to ensure effective operations. Habib is confident that with appropriate strategic measures, PIA can shift from being a loss-making organization to a profitable one.

“While PIA is an operationally viable entity, if the issues related to debts and employees are resolved after the takeover, it could quickly turn around and become profitable,” he said.

Regarding the ownership structure, Habib mentioned that potential buyers looking to acquire PIA are interested in purchasing 75% of the shares to secure majority control. He also pointed out that the airline cannot be sold for three years after privatization.

Habib indicated that Rs 600 billion of this debt would be transferred to a holding company, while the remaining Rs 200 billion would be assigned to the buyer.

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He highlighted that a large portion of PIA’s debt consists of tax liabilities and civil aviation dues. Habib stressed that allowing buyers a substantial timeframe to settle these debts would offer considerable relief and aid in the airline’s recovery.

A significant challenge for PIA is its massive debt, which amounts to Rs 800 billion, including interest.