ISLAMABAD: The Government of Pakistan has formally transferred the management control of Pakistan International Airlines Corporation Limited (PIACL) to the Arif Habib Consortium after completing the first financial closing under the airline’s privatization process.
According to an official statement issued by the Privatization Commission, the management transfer took effect on Monday, June 29, 2026, marking a major milestone in the government’s economic reform and privatization programme.
The commission said all conditions of the Share Purchase Agreement, signed on January 29, 2026, were fulfilled within a record timeframe. Throughout the transition, the airline continued its operations without disruption, ensuring uninterrupted services for passengers.
The buyer consortium has so far paid Rs10 billion to the Government of Pakistan and injected Rs80 billion into PIA. The investment is aimed at strengthening the airline’s financial position, expanding and modernizing its fleet, improving operational efficiency, and enhancing customer service.
Speaking to a private television channel, Arif Habib confirmed that PIA’s operations have been placed under PIA Equity Limited, a subsidiary established by the consortium. He said the company is also expected to be listed on the Pakistan Stock Exchange in the future.
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Under the privatization agreement, the airline has been valued at Rs180 billion. Of this amount, Rs55 billion will be paid to the government, while the remaining Rs125 billion will be invested directly into PIA. The funds will be used to modernize the fleet, launch new routes, accelerate the airline’s digital transformation, improve operational performance, and upgrade passenger services.
The Privatization Commission said the consortium will invest an additional Rs45 billion before the second financial closing, expected within the next year. If it exercises its option to acquire the remaining 25 percent stake in PIA, it will also pay another Rs45 billion to the government. The commission added that the consortium has already submitted a written expression of intent to purchase the remaining shares.
Adviser to the Prime Minister on Privatization Muhammad Ali said the successful completion of the first financial closing would strengthen the confidence of both local and international investors in Pakistan. He also acknowledged the support of the federal cabinet, the Privatization Commission Board, the Ministries of Finance and Defence, regulatory authorities, and financial advisers in completing the transaction.
