The Privatisation Commission has given the green light for Fauji Fertiliser Company (FFC) to join the consortium set to acquire a 75% stake in Pakistan International Airlines (PIA). This expansion of the buyer group comes as the substantial Rs135 billion ($480 million) deal approaches its first significant payment deadline in late April.

The board of the Privatisation Commission, chaired by Muhammad Ali, Adviser to the Prime Minister on Privatisation, confirmed that FFC met all necessary regulatory and eligibility criteria before approving its inclusion. The proposal will now be presented to the Cabinet Committee on Privatisation for final endorsement.

FFC’s participation was widely anticipated. When the consortium led by Arif Habib Corporation secured the winning bid in December, it was publicly indicated that FFC might join at a later stage. The transaction framework allows the consortium to nominate up to two additional members.

Arif Habib Corporation continues to be the lead member and hold the majority share. The enlarged consortium now comprises Fatima Fertiliser, AKD Group, City Schools, Lake City Holdings, and, pending cabinet approval, FFC.

The initial closing of the deal is scheduled for late April. At this point, the consortium is required to pay two-thirds of the bid amount, approximately Rs83.3 billion. Additionally, the group must declare its intention to purchase the government’s remaining 25% stake, which will be offered at a 12% premium.

This transaction is a crucial component of Pakistan’s reform agenda, supported by the International Monetary Fund (IMF). It aims to inject Rs124.87 billion directly into PIA, rather than channeling it to the national treasury. Prior to the sale, the airline was incurring annual losses of around Rs50 billion.

In separate matters, the Privatisation Commission’s board also recommended adjustments to the commission’s fee structure to enhance its financial stability and support ongoing institutional reforms.