PM welcomes PIA financial closing, vows reforms to strengthen economy

WEB DESK: Prime Minister Shehbaz Sharif has welcomed the successful first financial closing of the privatisation of Pakistan International Airlines (PIA), describing it as a landmark achievement that lays the foundation for the national carrier’s revival and reinforces investor confidence in Pakistan.

In a statement on X, the Prime Minister said the transfer of management control to the investor consortium marks the beginning of a new chapter for the airline.

He commended the efforts of Deputy Prime Minister Ishaq Dar, Field Marshal Syed Asim Munir and his team, Adviser to the Prime Minister on Privatisation Muhammad Ali, Finance Minister Muhammad Aurangzeb, the Privatisation Commission, and all those involved in the process.

Historic milestone in privatisation

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 following the completion of the first financial closing, the Privatisation Commission announced on Monday. The transaction satisfies all prerequisites of the Share Purchase Agreement signed on 29 January 2026, within an unprecedentedly short timeframe, while ensuring uninterrupted airline operations and passenger services.

Under the deal, the consortium has paid Rs10b($36m) directly to the government and injected Rs80b ($288m) in fresh capital into the airline. The new funds are intended to stabilise PIA’s finances, modernise its aging fleet, and improve operational efficiency.

The consortium is expected to invest an additional Rs45b by next year ahead of the second financial closing and has expressed intent to acquire the government’s remaining 25pc stake for a further Rs45b.

Strong signal to investors

Prime Minister Shehbaz Sharif stated that the first financial closing sends a strong signal to both domestic and international investors that Pakistan is open for business and committed to reform and growth. He reiterated the government’s commitment to protecting the interests of employees, passengers, and consumers during the smooth transition.

Adviser on Privatisation Muhammad Ali described the privatisation as a demonstration of Pakistan’s ability to execute complex transactions through a transparent, fair, competitive, and professionally managed process. Fauji Fertiliser Company (FFC) and the AKD Group have joined the Arif Habib-led consortium, which initially acquired a 75pc stake for Rs135b in December 2025.

The Privatisation Commission credited the federal cabinet, regulatory authorities, and financial advisers Ernst & Young (EY) Consulting Dubai for the swift execution of the deal. The government views this as a key step in its economic reform agenda aimed at offloading loss-making state-owned enterprises.