Karachi: Arif Habib, the chairman of the Arif Habib Group and a prominent businessman, has stated that buyers interested in acquiring PIA (Pakistan International Airlines) prefer to purchase 75% of the shares to gain majority control. He mentioned that whoever buys PIA will need to add at least 20 aircraft to the fleet and cannot sell the airline for at least the next three years. In a discussion with senior journalists in Karachi, Arif Habib expressed hope that the bidding process would be concluded by October 1st.
He highlighted that PIA’s major issue in the past has been debt and interest payments. Of PIA’s 800 billion rupees in debt, 600 billion rupees belong to the holding company, while 200 billion rupees will be the buyer’s responsibility.
Habib pointed out that the majority of PIA’s debts are owed to the FBR (Federal Board of Revenue) and the Civil Aviation Authority, and it is crucial that the buyer is given a reasonable time frame to repay these debts. Immediate repayment demands could adversely affect the price.
He also noted that the unresolved debt issue may cause potential buyers to be apprehensive, fearing that the switch could be turned off at any moment. When the organization was under government control, institutions provided some leeway.
Arif Habib concluded that while PIA is an operationally viable entity, if the issues related to debts and employees are resolved after the takeover, it could quickly turn around and become profitable.