Fauji Fertilizer Company Limited (FFC) has formally joined the consortium declared as the highest-ranked bidder for the privatisation of Pakistan International Airlines Corporation Limited (PIACL), according to a disclosure submitted to the Pakistan Stock Exchange on Wednesday.
In its regulatory filing, the fertilizer manufacturer stated that its Board of Directors has approved participation in the bidding consortium led by Arif Habib Corporation Limited. The consortium also includes Fatima Fertilizer Company Limited, The Lake City Holdings (Private) Limited, AKD Group Holdings (Private) Limited, and City Schools (Private) Limited.
The Privatisation Commission had declared the Arif Habib-led group as the highest-ranked bidder following the conclusion of the bidding process held on December 23, 2025. This marked a major milestone in Pakistan’s long-running effort to privatise its national flag carrier and reduce the financial burden of loss-making state-owned enterprises.
FFC noted that its participation follows an earlier announcement made in July 2025, when the company disclosed that the Privatisation Commission had approved its Statement of Qualification. At that time, the Board had authorised management to initiate buy-side due diligence of PIACL in order to assess the feasibility and structure of a potential acquisition.
Under the current arrangement, FFC’s Board has authorised the company to take all necessary steps to finalise and execute the required agreements and documentation with the consortium partners and the Privatisation Commission. This includes participation in transaction structuring and completion formalities in line with the prescribed privatisation framework.
Upon completion of the transaction, FFC will acquire and or subscribe to shares of PIACL, resulting in an equity stake in the national airline. The investment may be held directly by the company or indirectly through a special purpose vehicle established specifically for this purpose, as outlined in the transaction structure.
FFC clarified that the completion of the transaction remains subject to several conditions. These include the issuance of a formal Letter of Acceptance by the Privatisation Commission to the consortium as the successful bidder, execution of definitive transaction agreements among all parties, and fulfilment of all conditions precedent to closing. These conditions include obtaining the necessary corporate approvals, regulatory consents, and other statutory clearances.
The company further stated that it will continue to keep the Pakistan Stock Exchange informed of any further material developments related to the transaction, in accordance with disclosure requirements.
The privatisation of Pakistan International Airlines has been under discussion for several years, as successive governments have sought to offload financially distressed state-owned enterprises and improve operational efficiency through private sector participation. The airline has faced persistent losses, operational challenges, and balance sheet pressures, making its privatisation a key reform priority.
On December 23, 2025, Arif Habib Corporation emerged as the successful bidder for a 75 percent stake in PIACL, securing the deal with a bid of Rs135 billion. Under the approved transaction terms, 7.5 percent of the bid amount, equivalent to Rs10.125 billion, will be received by the Government of Pakistan through PIA Holding Company Limited.
The remaining 92.5 percent, amounting to Rs124.875 billion, will be injected into PIACL as fresh equity through a rights issue to support the airline’s turnaround and operational revival. This equity investment will be made in two tranches, with two-thirds, or Rs83.25 billion, payable upfront, and the remaining one-third, or Rs41.625 billion, to be invested within 12 months of financial close.
The government has positioned the transaction as a key step toward restoring PIA’s financial health, improving service quality, and reducing the fiscal burden on the state, while the participation of major domestic business groups is being viewed as a vote of confidence in Pakistan’s reform trajectory and aviation sector potential.
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