ISLAMABAD: Interior Minister Mohsin Naqvi on Thursday met with Boeing Global President Brendan Nelson in Washington and discussed with him the acquisition of 16 new aircraft for the Pakistan International Airlines (PIA), the Pakistani interior ministry said.
The airline, which had accumulated more than $2.8 billion in losses over the years, was privatized in Dec. 2025 after Arif Habib Corporation-led consortium agreed to acquire a 75 percent stake in it for Rs135 billion ($482 million), following a competitive bidding process that valued the carrier at Rs180 billion ($643 million).
Arif Habib, whose corporation led the consortium that bought PIA, told Arab News in Dec. they planned to more than triple the airline’s fleet to 64 aircraft from the existing 19 in up to eight years, adding that the airline would induct 38 four to seven-year-old, narrow and wide-body aircraft in the first phase.
Naqvi, who was accompanied by a delegation of the new PIA management, on Thursday called on the Boeing chief at the company’s headquarters in Washington and discussed the “best options” for the purchase of 16 new aircraft for the airline, according to the Pakistani interior ministry.
“Both sides agreed in the meeting to finalize the best deal as soon as possible,” the Pakistani ministry said in a statement. “Naqvi thanked Boeing Global President Brendan Nelson for the assurance of cooperation for the early purchase of new aircraft for PIA.”
There was no immediate comment from PIA on the development.
The development comes weeks after Pakistan announced the first closing of the divestment of the Pakistan International Airlines Corporation Limited (PIACL), the legal and corporate entity that represents PIA, through privatization and transfer of its management control to the consortium led by Arif Habib Corporation, following satisfaction of all conditions under the Share Purchase and Subscription Agreement (SPSA).
Under the first closing, the consortium paid Rs10 billion ($36 million) to the government as sale proceeds, and injected Rs80 billion ($288 million) into PIACL as fresh equity to strengthen the airline’s financial position, support fleet expansion and modernization, expand its route network, and enhance operational performance and customer service.
The bidding process, held on December 23, led to a total investment commitment by the consortium of Rs180 billion ($643 million), out of which Rs55 billion ($197 million) will be paid to Pakistani government for the sale of PIA and Rs125 billion ($449 million) are to be injected into the airline to support its long-term transformation and to revive the national carrier to its past glory, according to the Privatization Commission.
The second closing is scheduled to take place within 12 months of the first closing, in accordance with the terms of the SPSA, whereby the consortium has committed to invest a further Rs45 billion ($161 million) into PIACL. The consortium has also served its intent to buy the remaining 25 percent of the PIACL shares as a call option under the SPSA for an additional payment of Rs45 billion ($161 million) to the government.
Last week, two officials, who were privy to the matter, told Arab News that PIA has selected former head of Ethiopian Airlines Tewolde Gebremariam as its new chief executive officer as the former Pakistan state carrier seeks to revive its operations.
“The PIA would not announce his name until all the security clearances are not completed,” one official said, requesting anonymity as he was not authorized to speak to media.
