Arif Habib bought PIA
Tuesday was a very important day for Pakistan International Airlines (PIA), burdened with debt and losses. This government airline, which has been struggling with financial crisis for a long time, has finally been bought by a consortium led by Arif Habib Corporation. PIA has received a huge amount of Rs 135 billion (Pakistani currency) for this purchase. In return, the company has got 75% stake of the airlines. 92.5% of the total amount received from the auction will be spent on reforms and restructuring of the airline. PIA has 32 aircraft, which include models like Airbus A320, Boeing 737, Airbus A330 and Boeing 777.
To keep the auction process completely transparent, it was telecast live on TV. The government received a total of three bids, but the competition was quite interesting. The group led by Arif Habib won the biggest victory. This group includes big companies like Fatima Fertilizer, City Schools and Lake City Holdings.
What does Arif Habib do?
The group which has taken such a big gamble to buy PIA has a very strong profile. Arif Habib Group is a huge business empire of Pakistan. It was started by Arif Habib in 1970. Earlier it was limited only to stock market and brokerage, but today this group makes everything from finance to fertilizer and steel.
Arif Habib Limited (AHL), the main company of this group, provides investment and banking services in the stock market. Furthermore, their business is spread across several major sectors:
- Fertilizer: He has a major stake in the fertilizer business through Fatima Group.
- Construction and Steel: The group is also a big name in steel and cement production through companies like Ayesha Steel.
- Real Estate: This group is also active in property business through Javedan Corporation. Not only this, this group has also partnered with giants like Mitsubishi and Metal One at the global level. That is, the hand in which the command of PIA is likely to go is very strong financially.
How PIA reached the verge of being sold
let’s tell The condition of PIA has been deteriorating for many years. Poor management, fewer flights, passenger complaints and huge debts weakened the airlines. The credibility further declined due to the Karachi plane crash of 2020 and the discovery of fake pilot licenses. Due to pressure from IMF, the government had to take the decision to sell PIA.
Also read- Pakistan International Airlines sold, Arif Habib Consortium bought it for Rs 135 billion