Islamabad, June 16, 2025: In a significant diversification move, Fauji Fertilizer Company Limited (FFC), one of Pakistan’s leading fertilizer manufacturers, has formally expressed interest in acquiring shares in Pakistan International Airlines Corporation Limited (PIACL), the national flag carrier currently undergoing privatization.
The development was disclosed in a notice submitted to the Pakistan Stock Exchange (PSX) on Monday.
“The Board of Directors of Fauji Fertilizer Company Limited (FFC), during its 234th meeting held on June 13, 2025, approved submission of Expression of Interest (EoI) and prequalification documents to the Privatisation Commission regarding the potential acquisition of stakes in Pakistan International Airlines Corporation Limited (PIACL), and undertaking a comprehensive due diligence exercise in this regard,” the statement read.
FFC, incorporated as a public limited company in Pakistan, is primarily engaged in the manufacturing, marketing, and distribution of fertilizers and chemicals. Over the years, it has expanded into a range of sectors including cement, food processing, energy generation, and banking. The potential acquisition of a stake in PIA marks its entry into the aviation industry — a major shift in its corporate strategy.
The Government of Pakistan, through the PIA Holding Company Limited, currently owns around 96% of PIACL’s issued capital. The national airline, which operates a full-service aviation model, handled around 4 million passengers across 30 destinations last year, operating an average of 268 flights per week.
As part of broader reforms under a $7 billion International Monetary Fund (IMF) programme, the government is seeking to divest 51–100% of its stake in the financially struggling airline to attract fresh investment and reduce the burden of loss-making state-owned enterprises.
Last month, the deadline to submit Expressions of Interest was extended to June 19, 2025, from the earlier June 3 deadline, while maintaining all terms and conditions.
The government’s earlier attempt to privatize PIA failed after it received only one bid that fell significantly below expectations. The Blue World City consortium had offered Rs10 billion for a 60% stake — far below the Privatisation Commission’s minimum benchmark of Rs85.03 billion. The offer was rejected, stalling the previous bidding process.
The entry of FFC — a well-established and financially robust player — could inject renewed momentum into the PIA privatization process. Industry analysts believe that strategic investment from a reputable local conglomerate could aid in restructuring the airline’s operations and restoring public confidence.
