Pakistan Interior Minister Meets Boeing Executive on Procurement of 16 New Aircraft for PIA

ISLAMABAD—Interior Minister Mohsin Naqvi met on Thursday with Boeing Global President Brendan Nelson in Washington to discuss the acquisition of 16 new aircraft for Pakistan International Airlines (PIA), according to the ministry.

The airline, which has accumulated losses exceeding $2.8 billion over the years, was privatized in December 2025 after a consortium led by Arif Habib Corporation purchased a 75% stake for Rs135 billion ($482 million), a transaction that valued PIA at Rs180 billion ($643 million) following a competitive bidding process.

Arif Habib, whose consortium acquired PIA, told Arab News in December that the group intends to more than triple the airline’s fleet to 64 aircraft within eight years, beginning with the addition of 38 aircraft that are four to seven years old, encompassing both narrow‑body and wide‑body models.

Naqvi, accompanied by a delegation from the newly appointed PIA management, met with the Boeing chief at its headquarters in Washington on Thursday to explore the most suitable options for purchasing 16 new aircraft for the airline, as stated by the interior ministry.

Both parties agreed during the meeting to expedite the finalization of the most favorable terms. Naqvi expressed appreciation to Boeing Global President Brendan Nelson for his commitment to facilitate the timely acquisition of new aircraft for PIA.

PIA has not issued an immediate comment regarding this development.

This development follows Pakistan’s announcement of the first closing of the divestment of Pakistan International Airlines Corporation Limited (PIACL), the legal entity representing PIA, through privatization and the transfer of management control to the Arif Habib‑led consortium, after meeting all conditions of the Share Purchase and Subscription Agreement (SPSA).

Under the initial closing, the consortium transferred Rs10 billion ($36 million) to the government as sale proceeds and injected Rs80 billion ($288 million) of fresh equity into PIACL to reinforce its financial position, support fleet expansion and modernization, broaden its route network, and improve operational performance and customer service.

The bidding process, conducted on December 23, resulted in a total consortium investment commitment of Rs180 billion ($643 million), comprising Rs55 billion ($197 million) payable to the government for the PIA sale and Rs125 billion ($449 million) earmarked for the airline’s long‑term transformation, aiming to restore the national carrier to its former stature, according to the Privatization Commission.

The second closing is slated to occur within 12 months of the first closing, as stipulated by the SPSA terms, during which the consortium has pledged an additional Rs45 billion ($161 million) investment into PIACL. Moreover, the consortium has indicated its intention to acquire the remaining 25 % of PIACL shares via a call option under the SPSA, contingent upon an extra payment of Rs45 billion ($161 million) to the government.

Earlier this week, two officials familiar with the matter disclosed to Arab News that PIA has chosen former Ethiopian Airlines chief executive Tewolde Gebremariam as its new chief executive officer, as the airline seeks to rejuvenate its operations.

‘PIA will not announce his name until all security clearances are obtained,’ one official said, requesting anonymity because he is not authorized to speak to the media.

Source link