Arif Habib Group-led Consortium Acquires Full Control of PIA, Boosting Competitiveness and Tourism with Fleet Expansion Plans in Pakistan

It has been announced that the consortium, which is led by the Arif Habib Group, has plans to acquire the remaining 25% of the government’s share in the Pakistan International Airlines (PIA) and thus gain full control of the national flag carrier. This move is a significant step towards the privatization of the PIA, which is expected to transform the loss-making airline into a competitive entity in the world aviation industry, while also boosting the growth of the tourism industry in the country.

In December 2025, the consortium had acquired 75% of the PIA’s shares for Rs135 billion and is now looking to acquire the remaining 25% of the government’s share in the airline, which is valued at Rs45 billion, to gain full control of the airline and implement management changes by the end of April or early May 2026.

Privatization Plans: Boosting Aviation Competitiveness and Tourism Potential

Shahid Ali Habib, CEO of Arif Habib Ltd, emphasized that this acquisition will result in PIA’s transformation into a fully privately operated entity, with government-appointed board members removed from the decision-making process. This shift is expected to increase operational efficiency, cut costs, and improve customer experience, all of which are essential to improving the airline’s competitiveness.

The privatization of PIA will also play a key role in supporting the growth of Pakistan’s tourism sector, as it will enable the airline to provide more reliable, affordable, and efficient services for both domestic and international travelers. With the privatization of PIA, tourism in Pakistan is expected to see significant benefits, including increased international arrivals, better connectivity to key tourist destinations, and enhanced regional access.

Economic and Tourism Impact: Strengthening Pakistan’s Global Tourism Position

One of the main impacts of the PIA privatization will be its potential to strengthen Pakistan’s tourism sector. By modernizing its fleet, expanding routes, and improving service quality, PIA can cater to a growing demand for both domestic and international travel. With global tourism steadily recovering, a stronger PIA can be crucial in attracting international tourists to explore Pakistan’s rich cultural heritage, natural beauty, and historical landmarks.

Additionally, the expansion of PIA’s network will offer improved connectivity between Pakistan and global tourism hubs, making it easier for travelers to visit key destinations such as Lahore, Islamabad, Karachi, and the northern mountains. Enhanced connectivity can help facilitate tourism flows, increase tourism revenue, and contribute to the long-term economic development of the country.

PIA’s Role in Boosting Domestic and International Tourism

The privatization of PIA will also have a positive effect on domestic tourism by increasing tourist access to remote regions of Pakistan, particularly heritage villages, mountainous areas, and other culturally rich destinations. This expansion will enable local tourism businesses to capitalize on improved travel options, attracting more visitors to Pakistan’s hidden gems.

For international tourists, PIA’s renewed focus on service will enhance the overall tourism experience, offering travelers an accessible and reliable way to explore Pakistan’s diverse tourist attractions, such as the ancient ruins of Mohenjo-Daro, the beauty of Hunza, and the spiritual significance of Lahore’s Badshahi Mosque.

Rebuilding PIA: A Modernized Airline for the Future

The consortium’s plans for fleet expansion, which include the addition of more modern aircraft, will not only reduce operating costs but also improve the overall travel experience for tourists. The focus on customer service will be key in attracting repeat visitors and establishing PIA as a trusted airline for international travelers. The airline’s commitment to quality service and increased operational efficiency will improve tourism infrastructure in Pakistan, positioning the country as a top-tier destination in South Asia.

A Promising Future for PIA and Pakistan’s Tourism Industry

The acquisition of PIA by the Arif Habib Group-led consortium is a major milestone for the airline as well as the tourism industry of Pakistan. The privatization of PIA would not only revive the profitability of the airline but would also take the tourism industry of Pakistan to unprecedented heights. As access to global tourists would be facilitated, along with better customer service and infrastructure, PIA would be a major factor in bringing more tourists to Pakistan, which would contribute to the economic growth of the country.

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