Pakistan’s Fauji Fertilizer seeks entry into aviation, eyes PIA acquisition

Fauji Fertilizer Company Limited (FFC), one of Pakistan’s largest fertilizer manufacturers, has formally expressed interest in acquiring shares of Pakistan International Airlines Corporation Limited (PIACL) — Pakistan’s national airline — which is in the process of being privatized.

FFC disclosed the development in its notice to the Pakistan Stock Exchange (PSX) on Monday.

“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,” read the notice.

Incorporated in Pakistan as a public limited company, FFC is engaged in the manufacturing, purchasing, and marketing of fertilizers and chemicals. The company also undertakes investments in other fertilizer, chemicals, cement, food processing, energy generation, and banking operations.

Meanwhile, PIACL, a public limited company, is the flag carrier airline of Pakistan. The Government of Pakistan (GOP), through PIA Holding Company Limited, owns approximately 96% of the issued capital of PIA.

PIA is a full-service airline, providing aviation services supported by its ancillary segments. In the last financial year, PIA served approximately 4 million passengers across 30 destinations, carrying out 268 flights per week.

Last month, the government extended the deadline to submit EoI for buying PIACL until June 19, 2025, from the earlier June 3 deadline, with all terms and conditions remaining the same.

The government has been seeking to sell a 51-100% stake in the debt-ridden carrier to raise funds and reform cash-draining, state-owned enterprises (SOEs) as envisaged under a $7 billion International Monetary Fund programme (IMF).

It failed in the first attempt to privatise the PIA last year after receiving a single offer, well below the asking price of more than $300 million.

Blue World City consortium refused to match the minimum expectation of the Privatisation Commission of Rs85.03 billion and stuck to its original offer of Rs10 billion for a 60% stake in the PIA, ending the bidding process of the national flag carrier’s privatisation.