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Arab News
19-06-2025
- Business
- Arab News
Arif Habib Group submits bid as deadline nears for expressions of interest in PIA stake sale
ISLAMABAD: The chairman of the Arif Habib Group, a prominent Pakistani conglomerate with diversified interests across various sectors, said on Thursday the consortium had submitted its bid to acquire a stake in Pakistan International Airlines (PIA), the country's loss-making national flag carrier. Expressions of interest are due today, Thursday, for an up to 100 percent stake in PIA as the government moves forward with a long-delayed privatization plan aimed at easing pressure on its strained public finances. The sale of PIA will be the first major privatization for around two decades. Turning around loss-making state-owned enterprises is a condition of an ongoing $7 billion bailout by the International Monetary Fund. The government tried unsuccessfully to last year offload a stake in PIA, which is a major burden on its budget, but the sale was aborted because of the poor state of the airline and the conditions attached to any purchase. 'We have submitted our bid for acquiring the PIA stake,' Arib Habib, the chairman of Arif Habib Group, told Arab News. The group has a broad portfolio encompassing financial services, including brokerage and investment banking, fertilizers, cement, steel, real estate development, energy, and more. Some of its notable subsidiaries include Arif Habib Limited (AHL), Fatima Fertilizer Company Limited, Aisha Steel Mills Limited, Javedan Corporation Limited, and Sachal Wind Power. 'This time we are going into this process as a consortium that includes Arif Habib Corporation, Fatima Fertilizers Ltd., Lack City Holdings and City Schools Group.' In an advertisement issued by the government last month, it had said the deadline for the submission of expressions of interest and Statements of Qualification for the 'Divestment of Pakistan International Airlines Corporation Limited through privatization' had been extended to 4pm hours on Thursday, June 19, 2025. It did not provide a reason for the extension. No changes had been made to the remaining terms and conditions, the privatization commission had said. In April 2025, the commission invited expressions of interest from domestic and international investors to acquire a majority stake, ranging from 51 percent to 100 percent, in PIA, initially setting a submission deadline of Tuesday, June 3, 2025. According to the public notice, each EOI must be accompanied by a non-refundable processing fee of $5,000 or Rs1.4 million, with consortia required to pay the fee through any one member. Eligible bidders include legal entities such as companies, firms, and corporate bodies, either individually or as part of a consortium. Reuters reported on Wednesday that among those planning bids are Pakistani conglomerate the Yunus Brothers Group, owners of the Lucky Cement and energy companies, and a consortium led by Arif Habib Limited. Fauji Fertilizer Company, which is part-owned by the military, has also said it will be making an expression of interest. 'The board … has approved submission of an expression of interest and pre-qualification documents to the Privatization Commission … and undertaking a comprehensive due-diligence exercise,' FFC said in a notice to the Pakistan Stock Exchange this week. FFC is Pakistan's biggest fertilizer maker and has diversified interests in energy, food and finance. Any deal on PIA would expand the military group's footprint into aviation, though final terms will hinge on the government's privatization process and regulatory approvals. A group of PIA employees has also come forward to bid. 'The employees will use their provident fund and pension, in addition to finding an investor to place a bid. We're doing this to save jobs and turn around the company,' Hidayatullah Khan, president of the airline's Senior Staff Association, told Reuters this week. This is Pakistan's second attempt to sell PIA. A 2024 auction drew only one offer – Rs10 billion ($36 million) for 60 percent of the airline from real-estate developer Blue World City – far below the government's Rs85 billion ($305 million) floor price, and was rejected. Pakistan had offloaded nearly 80 percent of the airline's legacy debt and shifted it to government books ahead of the privatization attempt. The rest of the debt was also cleaned out of the airline's accounts after the failed sale attempt to make it more attractive to potential buyers, according to the country's privatization ministry. In April, PIA posted an operating profit of Rs9.3 billion ($33.1 million) for 2024, its first in 21 years. The airline has for years survived on government bailouts as its operational earnings were eaten up by debt servicing costs. Officials say offloading the debt burden and recent reforms like shedding staff, exiting unprofitable routes and other cost-cutting measures led to the profitable year. Ahead of the attempt to sell the airline last year, PIA had faced threats of being shut down, with planes impounded at international airports over its failure to pay bills and flights canceled due to a shortage of funds to pay for fuel or spare parts. With inputs from Reuters
Business Recorder
26-05-2025
- Business
- Business Recorder
Motorways in Sindh top priority of federal govt: Aleem
KARACHI: Federal Minister for Communications Abdul Aleem Khan has said that the construction of motorways in Sindh is a top priority of the government, and the M-6 and M-10 motorways will be launched simultaneously, as the M-6 is Pakistan's lifeline, which was unfortunately neglected by previous governments. Talking to the media along with Arif Habib chairman Arif Habib Group here on Monday, he said that a motorway will be incomplete in its utility without being connected to the Ports and both the M-6 and M-10 will be linked to the Karachi Port to ensure their full functionality. Highlighting the significance of the M-6 Project, the minister informed that it is a nearly Rs 400 billion initiative comprising upon five sections, each approximately kilometres long. 'There is no better opportunity for investment than in this project,' he pointed out. Aleem Khan said that financing has already been secured for two sections while discussions for the remaining three are ongoing. 'We will finalise the feasibility report and present it to the Prime Minister within the next 15 days,' he added. The federal minister further said that the motorways from Karachi to Hyderabad and from Hyderabad to Sukkur will be completed as early as possible while work on the N-25 Highway from Karachi to Quetta is also scheduled to begin later this year. 'Karachi's challenges are not just provincial, they are national issues and we will address them on a priority,' he emphasized. Replying to the questions, Khan stressed that his focus is on delivering progress rather than engaging in blame games. 'My effort is to prioritise the launch of motorway projects in Sindh; similarly, we are committed to completing the Kaghan-Naran motorway,' he said. He informed that the National Highway Authority (NHA) has recorded unprecedented growth in revenue over the current fiscal year and attaining the target from Rs 64 billion to Rs 110 billion while this additional income will be utilised into improving road infrastructure and constructing new motorways. To ensure road safety, he said that strict measures are being implemented against dangerous driving on motorways. 'Drivers exceeding 150 km/h are not only being fined but also facing FIRs,' he added. Mandatory use of M-Tags is helping reduce long queues, and staffing shortages in motorway police are being addressed,' Aleem Khan said. Regarding his visit to Karachi, the minister mentioned that he, along with the Federal Secretary Communications and Chairman of the NHA held meeting with the Chief Minister of Sindh and assured him of full support from his ministry. He also held a highly productive meeting with the business community led by Arif Habib, where investors expressed interest in participating in the development of Sindh's motorways and road networks. Additionally, he noted that a joint team is being formed to focus on additional options for the Lyari Expressway in Karachi, including improvements to interchanges and exploration of further development projects. Copyright Business Recorder, 2025
Business Recorder
21-05-2025
- Business
- Business Recorder
Going green: Power Cement to install 7.5MW wind plant
In a significant step toward sustainability, Power Cement Limited (POWER) has announced plans to set up a 7.5MW wind power project, which is expected to go live by FY2026. The listed cement maker shared the development during its corporate briefing session on Wednesday. The project will utilise Goldwind turbine with a capacity of 7,500 kW and will follow a rental model, similar to the company's existing solar agreements. 'Expected completion is targeted within FY2026,' the company stated. Upon the project's completion, wind energy would account for 11% of Power Cement's energy mix. The company already generates 34% and 6% of its energy from WHRS (Waste Heat Recovery System) and solar, respectively. Whereas, the remaining 60% comes from HESCO. Founded in 1981, Power Cement Limited stands as the flagship Company of Arif Habib Group, a prominent financial and industrial conglomerate. The factory site of the company is located at Motorway M-9, Nooriabad, Sindh. The company was previously known as Al-Abbas Cement Limited until its acquisition in 2010 by the Arif Habib Group. Presently, the company has three manufacturing lines, with a cumulative nameplate clinker production capacity of 10,700 TPD, with total annual capacity of 3.21 million tons. The company is one of the largest players in Pakistan's South zone with a total annual cement production capacity of 3.37 million tons, 11,235 TPD. The announcement aligns with a broader industry shift in Pakistan toward renewable energy as companies look to cut energy costs and reduce reliance on the national grid. Last month, Thatta Cement Company Limited completed and commissioned a 4.8MW wind power project at its plant in Thatta, Sindh. Earlier this month, Ali Asghar Textile Mills Limited (AATM), a former textile unit turned logistic service provider, informed it was developing a 1,00KW (1MW) solar power project, which has now entered the execution phase. In March, Tariq Corporation Limited announced plans to set up a 200KW solar power system at its facility.
Arab News
10-04-2025
- Business
- Arab News
Pakistan markets rebound as Trump makes tariff U-turn
KARACHI: Pakistan's stock market bounced back on Thursday after US President Donald Trump announced a 90-day delay in tariffs, analysts said. The KSE-100 Index surged by over 2,036 points (1.75 percent), following the announcement. On Wednesday (April 9), the KSE-100 Index had dropped 5 percent, leading to a 45-minute halt in trading. Zafar Moti, CEO of Zafar Moti Capital Securities, said the decision helped calm investors, while Ahsan Mehanti, Managing Director and CEO of Arif Habib Group, said the pause in tariffs was seen as good news by investors. 'The Pakistan Stock Exchange closed on a positive note,' Topline Securities said in its daily market review. 'This upward trajectory was fueled by a strong rebound in US and other international equity markets, with the index rallying as much as 3,331 points during intraday trading.'
