Asim Munir gets what he wanted, Pakistani military now tightens grip over national airline as well

Islamabad (The Uttam Hindu): What was long suspected has now effectively been confirmed. The Pakistani military has made a backdoor entry into Pakistan International Airlines (PIA) just days before the bidding process. Two days ahead of the auction, one key bidder unexpectedly withdrew, triggering speculation across local and international media that the move was strategic rather than procedural.

According to Geo News, the Arif Habib Consortium has formally announced the inclusion of Fauji Fertilizer Company Limited (FFCL) as part of its consortium. Arif Habib emerged as the highest bidder in the privatization auction, offering Rs 135 billion and securing a 75% stake in PIA.

In a statement issued on Thursday, the consortium said the partnership would provide financial support and corporate expertise to the airline. It also confirmed that Fauji Fertilizer would be involved in PIA’s management. The consortium plans to invest Rs 125 billion in the first year to upgrade ground operations and overall services.

Why Fauji Fertilizer matters

Fauji Fertilizer Company Limited, founded in 1978, is a fertilizer manufacturer that operates under the Fauji Foundation, an entity closely linked to the Pakistan Army. Initially, four companies were part of the bidding process, but FFCL withdrew at the last moment, citing multiple factors.

One key reason was financial. The Arif Habib Consortium’s bid far exceeded government estimates Rs 4,320 crore against an expected Rs 3,200 crore, bringing in an additional Rs 1,320 crore. Matching such a bid was not feasible for FFCL.

Another critical factor was regulatory. Under auction rules, losing bidders cannot participate in PIA’s management. A direct loss would have ended any chance of military influence in the aviation sector something observers say Chief of Army Staff Asim Munir was keen to avoid.

There was also concern over optics. With Pakistan’s privatization drive closely tied to IMF-backed reforms, direct military participation could have sent the wrong signal, as auction conditions allowed only private entities to acquire stakes.

By staying out of the bidding but entering later through a partnership, the military-linked entity retained influence. Auction rules allow the winning bidder to form alliances after acquisition—effectively keeping control within reach without violating formal conditions.