ISLAMABAD: Pakistan International Airlines (PIA) is set for a major fleet expansion and service overhaul as its new private owners map out an ambitious plan to grow the national carrier from 18 operational aircraft to 60 within five years, following the formal signing of privatization agreements.
Speaking with Pakistan TV Digital, Arif Habib, chairman of the consortium that acquired a controlling stake in PIA, said the immediate focus will be on restoring aircraft already grounded, expanding capacity through leased planes, and placing long-term orders with major manufacturers to rebuild the airline’s network and competitiveness.
A consortium led by the Arif Habib Group recently acquired a 75% stake in PIA, investing Rs135 billion ($482 million) through a structured, competitive bidding process. The deal values the national carrier at Rs180 billion ($643 million) and marks a significant step in revitalizing the airline, which has faced financial challenges in the past.
“By the end of the current year, we will be able to take the fleet from 18 aircraft to 24,” Habib told Pakistan TV Digital. “Within three years, we plan to increase it to 38 aircraft, and within five years, we are targeting a fleet of 60 aircraft.”
The expansion plan comes as the government formally concluded the legal phase of PIA’s privatization, signing the share purchase and shareholders’ agreements with the winning consortium.
Muhammad Ali, chairman of Pakistan’s Privatization Commission, said the transaction marked a turning point for an airline that had been a sustained burden on public finances.
“The bidding was completed on Dec. 23, but after that, we needed time to finalize complex legal agreements and meet several conditions,” Ali said. “Today, the agreements are signed, and the handover will take approximately 90 more days.”
Ali said PIA had incurred average annual losses of around Rs50 billion ($179 million) over the past decade, with losses totaling roughly Rs650 billion ($2.33 billion) ultimately borne by taxpayers.
“Now, the government is not responsible for any loss,” he said. “Inshallah, the private sector management will make it more efficient and profitable.”
Habib said the consortium’s strategy recognizes the tight global aircraft market, where new plane deliveries are currently projected several years out.
“If you order a new aircraft today, delivery is available around 2031 or 2032,” he said. “We are in negotiations with Boeing and Airbus so that, alongside new orders, we can acquire five- to ten-year-old aircraft on lease until the new planes arrive.”
In parallel, the new owners plan to revive aircraft currently out of service. “Within six to eight months, we believe we will be able to bring back about eight aircraft that are not operational at the moment,” Habib said.
Beyond fleet numbers, Habib emphasized that improving passenger experience would be an early priority.
“Our plan is to improve services for users, cleaning, cabin services, check-in counters, uniforms, catering, seats, and overall presentation,” he said. “We will put in new carpets, new seats, improve in-flight entertainment, and ensure that the attitude of cabin staff is more user-friendly.”
The expansion is expected to support higher flight frequencies on key international routes, particularly long-haul destinations with strong demand. Habib said the consortium aims to increase services to destinations such as the United Kingdom and Canada, where current operations are limited.
“There is a lot of demand, especially for long-haul flights, and we want to increase frequencies, including moving toward daily flights on certain routes,” he said.
Speaking to Pakistan TV Digital, the privatization chairman said the transaction also sends a broader message about Pakistan’s reform agenda, underscoring the government’s resolve to push ahead with privatization and to implement complex economic reforms through transparent and competitive processes.
“This deal shows that Pakistan is serious about privatization and that the government has the capacity and the will to execute complex transactions,” Ali said, adding that the process was conducted through open, competitive bidding with strict financial and technical requirements.
He also underscored the role of domestic investors.
“This transaction has shown that local entrepreneurs believe in Pakistan,” Ali said. “It sets a strong precedent for future privatizations.”
For Habib, the revival of PIA carries both commercial and symbolic importance. “PIA is a national airline, and people’s sentiments are attached to it,” he said.
“We consider it a matter of national pride to restore an airline that once had a leading position globally.”
As the transition period begins, both the government and the new owners say coordination will be critical to ensure regulatory approvals, management continuity and a smooth transfer of control, laying the groundwork for what they describe as a new growth phase for Pakistan’s flag carrier.
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