ISLAMABAD (PEN) : Fauji Fertilizer Company Limited (FFC), one of Pakistan’s leading fertilizer manufacturers, has officially expressed interest in acquiring a stake in Pakistan International Airlines Corporation Limited (PIACL), marking the conglomerate’s potential entry into the aviation sector.
The development was disclosed in a filing to the Pakistan Stock Exchange (PSX) on Monday. The move aligns with the government’s ongoing efforts to privatize state-owned enterprises (SOEs), including the debt-laden national flag carrier.
FFC Seeks Entry Into Aviation Sector
According to the notice, the FFC Board of Directors approved the submission of an Expression of Interest (EoI) and prequalification documents to the Privatization Commission during its 234th meeting held on June 13, 2025.
> “Board of Directors of Fauji Fertilizer Company Limited (FFC) during 234th Board of Directors meeting held on June 13, 2025 has approved submission of Expression of Interest (EoI) and prequalification documents to the Privatization Commission in relation to the potential acquisition of stakes in Pakistan International Airlines Corporation Limited (PIACL), and undertaking a comprehensive due diligence exercise in this regard,” the notice read.
FFC, a public limited company, is primarily engaged in the production and sale of fertilizers and chemicals. It also holds investments in sectors such as cement, food processing, energy generation, and banking.
PIA Privatization Drive Continues
PIACL, which operates as Pakistan’s national airline, is majority-owned by the government through the PIA Holding Company Limited, controlling around 96% of its issued capital. The airline currently operates 268 flights per week across 30 destinations, serving approximately 4 million passengers annually.
The government is offering between 51% and 100% of its shareholding in PIA to potential investors as part of its economic reform strategy under a \$7 billion program supported by the International Monetary Fund (IMF).
Last month, authorities extended the deadline for submitting EoIs from June 3 to June 19, 2025, while maintaining all previously outlined conditions.
Previous Privatization Attempt Falls Short
This is not the first attempt to privatize PIA. A prior bidding process failed after receiving only one bid — from the Blue World City consortium — that was significantly below expectations. The consortium offered Rs10 billion for a 60% stake, falling far short of the Privatisation Commission’s benchmark valuation of Rs85.03 billion.
The government has since restructured its approach, hoping to attract serious bidders through extended timelines and clarified terms.
