Pakistan, April 7 -- In a major step towards privatisation, the shareholders of PIA Holding Company Limited (PIAHCL) have approved the divestment of a 75% stake in Pakistan International Airlines Corporation Limited (PIACL).

The divestment would be executed through a combination of share transfer and dilution, PIAHCL said in a notice to the Pakistan Stock Exchange (PSX) on Monday. Last year, a consortium headed by the Arif Habib Corporation emerged as the top bidder in a live-televised auction for a 75% stake in PIA, marking a breakthrough for the government's long-delayed privatisation of the carrier. The Arif Habib consortium offered Rs135 billion, i.e. $482.14 million, surpassing a government reserve price of Rs100 billion.

"The memb...