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–Pakistan transfers management control of PIA to investor consortium after completing the first financial closing of the Rs180 billion privatisation transaction
BeNewz Report
ISLAMABAD: The Government on Monday transferred management control of Pakistan International Airlines Corporation Limited–PIACL–to an investor consortium led by Arif Habib Corporation Limited after successfully achieving the first financial closing of the airline’s privatisation transaction.
The milestone was announced by the Privatisation Commission, which said all conditions precedent under the Share Purchase and Subscription Agreement (SPSA) had been fulfilled, allowing the transfer of management control to the private investor.
The first financial closing marks a major step in the government’s economic reform programme and its broader strategy to increase private sector participation in key state-owned enterprises. Officials said the transaction reflects the government’s commitment to a transparent, competitive and investor-friendly privatisation process under Prime Minister Shehbaz Sharif’s economic reform agenda.
The Privatisation Commission credited Deputy Prime Minister Ishaq Dar, the Cabinet Committee on Privatisation, the Ministry of Defence, the Ministry of Finance and other government institutions for facilitating the transaction.
Under the agreement, the investor consortium has committed a total investment of Rs180 billion. This includes Rs55 billion to the Government of Pakistan as payment for the sale of PIACL shares and Rs125 billion in fresh equity to revive and modernise the national airline.
As part of the first financial closing, the consortium paid Rs10 billion to the government as sale proceeds and injected Rs80 billion into PIACL as fresh equity. The investment will strengthen the airline’s financial position, support fleet expansion and modernisation, expand its route network, improve operational efficiency and enhance customer services.
The Privatisation Commission said the conditions precedent were completed within a compressed timeframe while ensuring uninterrupted airline operations, preserving aviation certifications, maintaining commercial relationships and safeguarding employees’ interests throughout the transition.
The PIACL privatisation process began with the execution of the SPSA on January 29, 2026, following a competitive bidding process held on December 23, 2025. The transaction required completion of multiple regulatory approvals, aircraft financing arrangements, taxation restructuring, governance reforms, aviation policy changes, airport infrastructure arrangements and commercial consents from aircraft lessors.
The second financial closing is scheduled within 12 months. Under the agreement, the consortium will invest an additional Rs45 billion into PIACL and has also expressed its intention to exercise a call option to acquire the remaining 25 percent government shareholding for another Rs45 billion.
Adviser to the Prime Minister on Privatisation Muhammad Ali said the successful transaction demonstrated Pakistan’s ability to complete complex strategic privatisation deals through a transparent, fair and professionally managed process.
He said the deal reinforces the government’s commitment to fiscal discipline, economic reforms and increased private sector participation while strengthening investor confidence in Pakistan.
The government said all aviation laws and regulatory oversight would remain in place after the transfer of management and reiterated its commitment to protecting the interests of employees, passengers and consumers while ensuring uninterrupted airline operations during the transition.
The Privatisation Commission also acknowledged the contribution of its board, participating ministries, regulatory authorities and the financial advisory consortium led by EY Consulting LLC Dubai in successfully completing the first financial closing of one of Pakistan’s largest privatisation transactions.
