Fauji Fertilizer Expresses Interest in Buying PIA Shares
Fauji Fertilizer Company Limited (FFC), the largest fertilizer producer in Pakistan, has formally shown interest in acquiring shares of Pakistan International Airlines (PIA). This development comes amid the government’s ongoing efforts to privatize the national flag carrier.
On Monday, FFC submitted an official notice to the Pakistan Stock Exchange (PSX), stating that its Board of Directors, during its 234th meeting held on June 13, 2025, approved the submission of an Expression of Interest (EOI) along with pre-qualification documents to the Privatization Commission. In addition, the company decided to conduct a detailed assessment of PIA’s financial and operational affairs.
FFC’s Diversified Business Background
According to media reports, Fauji Fertilizer is not only a key player in Pakistan’s fertilizer and chemical sector but also has significant investments in other industries such as cement, food processing, energy, and banking. The company’s new interest lies in becoming a stakeholder in the national airline.
PIA’s Ownership and Operational Overview
PIA is currently a government-owned, full-service airline. Approximately 96% of its shares are held by the PIA Holding Company Limited, which operates under the control of the Government of Pakistan. In the last financial year, PIA served over 4 million passengers across 30 destinations, operating 268 weekly flights.
Privatization Deadline Extended
Initially, the government had set June 3, 2025, as the deadline for interested investors to submit their EOIs. However, this deadline has now been extended to June 19, 2025, to allow more serious buyers to come forward. The government has linked this privatization process to the $7 billion economic reform program supported by the International Monetary Fund (IMF).
Background: A Failed Attempt in the Past
It’s worth mentioning that a previous attempt to privatize PIA in the last year did not succeed. Back then, Blue World City Consortium was the only party to show interest and had offered to purchase 60% of PIA’s shares for Rs. 10 billion. However, this offer fell far short of the government’s minimum valuation of Rs. 85 billion, leading to the failure of the privatization bid.
