Govt completes PIA privatisation, hands operational control to buyer consortium

ISLAMABAD: The federal government has officially transferred operational control of Pakistan International Airlines Corp Ltd (PIACL) to the buyer consortium led by Arif Habib Corporation Limited after successfully completing the first financial closing of the national flag carrier’s privatisation, the Privatisation Commission said on Monday.

The handover marks a critical milestone in the government’s economic reform agenda, which has been accelerated under pressure from global lenders to offload loss-making state-owned enterprises.

“The transaction satisfies all prerequisites of the Share Purchase Agreement signed on January 29, 2026, within an unprecedentedly short timeframe while maintaining uninterrupted airline operations and passenger services,” the Privatisation Commission said in a statement.

Under the terms of the deal, the winning consortium has paid Rs10 billion ($36 million) directly to the government of Pakistan and injected Rs80 billion ($288 million) in fresh capital into the ailing airline.

The new capital is aimed at stabilising PIA’s financial health, expanding and modernizing its aging fleet, and enhancing operational efficiency.

The consortium is slated to pump an additional Rs45 billion into PIACL by next year ahead of the second financial closing. It has also given written notice of its intent to acquire the government’s remaining 25 per cent stake in the airline for an additional Rs45 billion.

“This privatisation demonstrates Pakistan’s ability to execute complex transactions through a transparent, fair, competitive, and professionally managed process,” Prime Minister’s Adviser on Privatisation Muhammad Ali said in the statement.

He said that the move would bolster domestic and international investor confidence.

The Privatisation Commission credited the federal cabinet, regulatory authorities, and financial advisors Ernst & Young (EY) Consulting Dubai for the swift execution of the deal.

Later, Fauji Fertiliser Company (FFC) and the AKD Group officially joined the consortium led by Arif Habib Corporation Limited, which acquired a 75 per cent stake in the national carrier for Rs135 billion on December 23, 2025. On April 28, 2026, the Arif Habib-led consortium acquired the remaining 25 per cent shareholding in PIA from the government.