Gujarat Roots and Pakistan’s Biggest Deal: Who is PIA’s New ‘Habib’?

Once the pride of Pakistan, Pakistan International Airlines (PIA) has been sold in what is being hailed as the largest deal in the country’s history. The airline has been acquired by a consortium led by Arif Habib Investment Firm, known for buying stakes in government-owned companies. The firm’s founder, Arif Habib, has roots in Junagadh, Gujarat, India, before his family relocated to Pakistan after Partition.

The Sale Details

The PIA transaction was completed at PKR 135 billion (approximately ₹4,300 crore). The consortium will initially acquire 75% of PIA’s shares, with the remaining 25% to be purchased within 90 days. Of the proceeds, 92.5% will be invested in improving the airline, while the remaining 7.5% will go to the government. Additionally, Arif Habib is committed to investing another PKR 8 billion in PIA over the next five years. To facilitate the sale, the government had absorbed PKR 654 billion in debt last year.

Three companies bid for the airline: Arif Habib, Lucky Cement, and AirBlue. After a tight competition, Arif Habib’s consortium emerged victorious. The government’s reference price was PKR 100 billion, while AirBlue’s bid was the lowest at PKR 26.5 billion.

Arif Habib: The Man Behind the Deal

Arif Habib, a successful businessman, has interests across financial services, real estate, cement, fertilizers, energy, and steel. The group is also known for its charitable work. Born in Karachi, Arif Habib started his career as a stockbroker at Karachi Stock Exchange and has since built a personal fortune of around $500 million, ranking 18th among Pakistan’s wealthiest.

India Connection

Arif Habib’s family originally ran a tea business in Junagadh, Gujarat, before moving to Karachi post-Partition. This Gujarat connection links him back to India even as he leads one of Pakistan’s most significant privatization deals.

With this acquisition, PIA now looks set for a major revival under private management, marking a new chapter in Pakistan’s aviation history.