- FFC meets all regulatory, eligibility requirements, confirms PC board.
- Proposal now moves to Cabinet Committee on Privatisation for final approval.
- Arif Habib Corp-led consortium won PIA bid, allowing up to two new members.
ISLAMABAD: The Privatisation Commission has approved the participation of Fauji Fertiliser Company (FFC) in the consortium acquiring a 75% stake in Pakistan International Airlines, broadening the buyer group as the Rs135 billion ($480 million) deal approaches its first major payment deadline in late April.
The board of the Privatisation Commission, led by Prime Minister’s Adviser on Privatisation Muhammad Ali, confirmed that FFC meets all regulatory and eligibility requirements before endorsing its inclusion, The News reported.
The matter will now move to the Cabinet Committee on Privatisation for final approval.
FFC’s entry was widely anticipated. When the Arif Habib Corporation-led consortium edged out a rival Lucky Cement group in December with a winning bid of Rs135 billion, the country’s largest privatisation in two decades, Habib had publicly signalled that FFC could join at a later stage. Under the transaction framework, the consortium was permitted to nominate up to two additional members.
Arif Habib Corporation remains the lead member and majority stakeholder. The expanded consortium now includes Fatima Fertiliser, AKD Group, City Schools, Lake City Holdings, and, pending cabinet sign-off, FFC.
The deal’s first closing is in late April and requires the consortium to pay two-thirds of the bid amount, roughly Rs83.3bn. At that stage, the group must also declare whether it intends to acquire the government’s remaining 25% stake, available at a 12% premium.
The transaction, structured to inject Rs124.87bn directly into PIA rather than the national treasury, is central to Pakistan’s IMF-backed reform agenda. The airline had been haemorrhaging roughly Rs50bn annually before the sale.
Apart from this, the Privatisation Commission’s board also recommended revising the commission’s fee structure to strengthen its financial sustainability and support institutional reforms.
