Arif Habib responds to social media reports claiming PIA sold at low price

Karachi: Businessman Arif Habib has responded to social media reports, claiming that Pakistan International Airlines (PIA) was sold at a very low price.

The Arif Habib Group-led consortium has successfully acquired a 75 percent stake in the national flag carrier for Rs135 billion.

Some commentators claimed that PIA was sold for the price of one or two aircraft, alleging that the amount paid for a 75 percent stake is roughly equivalent to the cost of a single large Boeing aircraft.

Speaking to ARY News, Arif Habib clarified that PIA currently has zero book value, with all its capital wiped out.

“If you look at PIA’s balance sheet, its book value is zero, which means it has no equity. Its liabilities are equal to its assets,” he said.

He added that while PIA owns certain properties, these have already been marked to market.

According to him, PIA’s net asset value stands at Rs25 billion, primarily due to deferred tax assets. “The airline has liabilities of around Rs190 billion and assets of approximately Rs180 billion,” he explained.

Responding to a question about the possible closure of non-profitable routes, Arif Habib said such steps would be necessary to prevent further financial deterioration.

“We will definitely close non-profitable routes; otherwise, the capital will be exhausted again and the company will face another crisis,” he said.

However, he added that if the government wishes to continue operations on loss-making routes, it would need to assume responsibility for covering the losses.

Earlier, Arif Habib outlined ambitious plans for the revival of PIA.

Speaking about the development, Arif Habib said the achievement is “a success for the entire nation, the government, and all PIA passengers.” He revealed that 92 percent of the Rs135 billion bid will be spent directly on the airline, with approximately Rs125 billion allocated for company development over the next year.