Privatization Commission backs military-linked firm’s inclusion in PIA buyer consortium

Pakistan International Airlines (PIA) aircraft taxis ahead of its takeoff for Paris at the Islamabad International Airport on January 10, 2025. (AFP/File)
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Updated 03 March 2026
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Privatization Commission backs military-linked firm’s inclusion in PIA buyer consortium

  • Fauji Fertilizer nominated to join Arif Habib-led group bidding for national airline
  • Move marks further step in IMF-backed state enterprise reforms

KARACHI: Pakistan’s Privatization Commission on Tuesday recommended the inclusion of a military-linked fertilizer company in the consortium led by Arif Habib Corporation Limited, the successful bidder for a majority stake in Pakistan International Airlines (PIA), as the government advances long-delayed reforms of state-owned enterprises.

The development is part of Pakistan’s broader privatization push under its $7 billion International Monetary Fund (IMF) Extended Fund Facility approved in September 2024, which requires restructuring and divestment of loss-making state-owned enterprises. PIA has accumulated significant losses over the years and remains a financial burden on the national exchequer.

In December, a consortium headed by the Arif Habib Corporation emerged as the top bidder for a 75 percent stake in Pakistan International Airlines in a breakthrough for the government’s long-delayed privatization of the carrier. The consortium entered a 135 billion Pakistani rupee ($482.32 million) bid, topping the offer of a rival group led by Lucky Cement in an intense back and forth that was broadcast live on television.

The Privatization Commission on Tuesday endorsed the nomination of Fauji Fertilizer Company Limited (FFC) to join the consortium led by Arif Habib.

“The PC Board, after due scrutiny and review, endorsed the nomination and confirmed that FFC fulfils the applicable eligibility and regulatory requirements,” the Ministry of Privatization said in a statement.

The proposed inclusion remains subject to approval by the Cabinet Committee on Privatization (CCoP) and the federal cabinet.

FFC is one of Pakistan’s largest listed fertilizer manufacturers and is majority-owned by the Fauji Foundation, a military welfare organization that operates commercial enterprises to fund services for retired armed forces personnel and their families. Its inclusion strengthens the financial profile of the bidding consortium.

The sale of a majority stake in PIA would mark the first major privatization in Pakistan in nearly two decades.

But the process has been shaky. A similar televised event in 2024 attracted a solitary bid from real estate developer Blue World City of $36 million, well short of the government’s declared minimum price of $305 million for a 60 percent stake.

As part of its efforts to revive the flag carrier airline, Pakistan’s government has assumed most of its legacy debt.

PIA has now posted its first pre-tax profit in two decades, and Britain and the European Union have lifted a five-year ban that had shut it out of key routes, supporting a higher valuation.


Four people, including two policemen, killed in twin blasts in northwest Pakistan

Updated 07 March 2026
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Four people, including two policemen, killed in twin blasts in northwest Pakistan

  • Attack on police van in South Waziristan and motorbike-mounted IED in Lakki Marwat hits KP province
  • Violence comes amid a surge in militancy and cross-border clashes between Pakistan and Afghanistan

ISLAMABAD: At least four people, including two policemen, were killed and about 20 others wounded in two separate blasts in Pakistan’s northwestern Khyber Pakhtunkhwa province on Saturday, officials said, the latest violence in a region grappling with militant violence.

One explosion targeted a police patrol van in Wana, the main town of South Waziristan district near the Afghan border, while another blast caused by explosives mounted on a motorbike struck a market area in Lakki Marwat district, according to police officials and preliminary reports.

The incidents come amid rising militant violence in Pakistan’s northwest, where authorities say armed groups operate from across the border in Afghanistan, straining relations between Islamabad and the Taliban administration in Kabul, with both sides engaged in a military conflict since last month.

“The control room received information in the evening about a bomb blast targeting a police van in Wana Bazaar,” a police official in the area, who did not want to be named, confirmed while speaking to Arab News over the phone.

He confirmed two deaths in the incident while saying more than 25 people had been injured.

The official said rescue teams responded promptly and shifted three seriously injured people to a nearby hospital in Wana.

In another incident during the day in Lakki Marwat, an improvised explosive device attached to a motorbike exploded near shops.

“Two people have been killed and about 10 have been injured in an IED blast in Lakki Marwat,” Raza Khan, Deputy Superintendent of Police in Bannu, told Arab News.

“The deceased are identified as Shoaib Ur Rehman and Furqan Ullah,” he added. “Shoaib, the owner of the shop, was the brother of the Lakki peace committee head.”

Peace committees in the region are informal, community-based groups that work with security forces to report militant activity and maintain order, making their members frequent targets of attacks.

Pakistan’s Interior Minister Mohsin Naqvi condemned the attacks and expressed grief over the incidents.

“I strongly condemn the blast near a police patrolling vehicle in Wana Bazaar,” Naqvi said in a statement, confirming the killing of four people, including two police personnel.

“Khyber Pakhtunkhwa police are on the front line in the war against terrorism,” he said, noting the force had made “unforgettable sacrifices” in the fight against militant groups.

Militant violence has surged in Pakistan’s border regions in recent months, particularly in Khyber Pakhtunkhwa and Balochistan provinces.
Islamabad has repeatedly accused the Afghan Taliban government of allowing militant groups, including the Tehreek-e-Taliban Pakistan (TTP), to operate from Afghan territory — a charge Kabul denies — as cross-border tensions between the two neighbors have escalated.