Key Takeaways
- Arif Habib, a prominent businessman, announced plans to expand Pakistan International Airlines Corporation Limited (PIACL)’s fleet.
- The expansion will be phased over the next ten years and aims to add up to 60 aircraft.
- Habib emphasized that good senior management and additional aircraft would improve PIA’s performance.
Renowned businessman Arif Habib has announced plans for Pakistan International Airlines Corporation Limited (PIACL) to expand its fleet, aiming to add up to 60 aircraft over the next decade. This development is part of a broader effort to revitalize the airline, which has been facing operational challenges.
Speaking at the conclusion of ‘Talk Series’ organized by the Securities and Exchange Commission of Pakistan (SECP), Habib stated that the expansion would be carried out in a phased manner. He highlighted that after the addition of aircraft and the appointment of a new senior management team, there will be visible improvements in PIA’s performance.
Habib also addressed concerns regarding sales tax exemptions under the Finance Act 2026, expressing satisfaction over the tax relief granted to PIA. According to him, this is part of the privatization process and will contribute positively to the airline's operations.
In response to queries about the current state of PIACL, Habib clarified that the airline remains profitable as a core business entity and does not operate at a loss. He further stated that all foreign properties of the airline are now with the holding company, indicating a strategic shift in asset management.
Highlighting the challenges faced by investors, Habib pointed out that high energy prices and tax rates are significant obstacles to investment. He noted that the cumulative effect of taxation comes to around 60 percent, including corporate tax and Super Tax. He suggested that reducing taxes and energy prices could encourage more investment in the sector.
During his remarks, Habib also addressed the issue of agreements with Independent Power Producers (IPPs), describing them as very negative and disadvantageous. He criticized the excessive IPP agreements signed between 2014-2015 to address load shedding issues, suggesting that these agreements have had a detrimental impact on the cost of production.
In his concluding remarks, Habib expressed strong confidence in Pakistan’s capital market, citing its long-term performance and potential for growth. He noted that the Pakistan Stock Exchange (PSX) has delivered an average annual return of around 22 percent in rupee terms and approximately 14 percent in US dollar terms over the years, making it one of the best-performing markets in the region.
Habib emphasized the need to create greater awareness among young people to promote an investment culture and encourage broader participation in the capital market. He highlighted his longstanding contributions to Pakistan’s capital markets and financial sector, noting that interactions with business leaders provide valuable insights into market dynamics and leadership.
After the addition of aircraft and good senior management, you will visibly see the difference in the performance of PIACL.
Arif Habib, Chief Executive of Arif Habib Corporation Limited
The cumulative effect of taxation comes to around 60 percent, including corporate tax and Super Tax. If the government reduces taxes and energy prices, it will encourage investment.
Arif Habib, Renowned businessman and investor
