The Government of Pakistan has completed the first financial closing of the privatisation of Pakistan International Airlines Corporation Limited (PIACL), officially transferring the airline’s management control to the investor consortium led by Arif Habib Corporation Limited.
The development comes after all conditions outlined in the Share Purchase and Subscription Agreement (SPSA) were fulfilled, according to a statement issued by the Privatisation Commission.
Officials described the transaction as a major milestone in the government’s broader economic reform programme and an important step toward restructuring the national flag carrier through private-sector investment.
Government Receives Initial Payment
Under the first financial closing, the government received Rs10 billion as the initial payment for the sale of PIACL.
In addition, the investor consortium injected Rs80 billion into the airline as fresh equity. According to the Privatisation Commission, the funds will be used to strengthen PIA’s financial position, modernise its fleet, expand flight operations, improve customer services, and support the airline’s long-term commercial revival.
The commission said the investment is expected to enhance the airline’s operational efficiency and competitiveness while laying the foundation for sustainable future growth.
Total Investment Commitment Reaches Rs180 Billion
The successful bidder was selected through a competitive auction held on December 23, 2025.
According to the Privatisation Commission, the consortium has committed a total investment of Rs180 billion.
Of this amount:
- Rs55 billion will be paid to the Government of Pakistan for the acquisition of PIACL.
- Rs125 billion will be invested directly into the airline to support its restructuring and development.
The second financial closing is scheduled within 12 months, during which the consortium has committed to inject an additional Rs45 billion into PIACL.
The commission further stated that the consortium has also expressed its intention to exercise a call option to acquire the remaining 25% shareholding in PIACL for an additional payment of Rs45 billion to the government, in accordance with the terms of the agreement.
Pakistan Sells 75% of PIA to Arif Habib Consortium for Rs135 Billion
Extensive Preparations Before the Handover
The Privatisation Commission said that since the signing of the Share Purchase and Subscription Agreement on January 29, 2026, government institutions completed numerous regulatory and operational requirements before the transaction could reach its first closing.
These included obtaining domestic and international regulatory approvals, securing commercial and leasing consents, implementing aviation policy reforms, restructuring legacy tax liabilities, arranging aircraft financing, strengthening corporate governance, completing airport infrastructure arrangements, and fulfilling other contractual obligations.
Officials noted that all these steps were completed while ensuring uninterrupted flight operations, maintaining aviation certifications, preserving commercial partnerships, and safeguarding employees’ interests throughout the transition process.
Today, #PIA officially transitions to new management under PIA Equity Ltd (a SPV of Arif Habib Consortium), marking a bold new chapter of modernization and global excellence. With a massive Rs125B equity injection, PIA is now fully capitalized and ready to modernize the airline… https://t.co/hrcGwu4QZC
— PIA (@Official_PIA) June 29, 2026
Government Terms Deal a Milestone in Economic Reforms
In the official statement, the Privatisation Commission said the successful completion of the first closing reflects the government’s commitment to implementing a transparent, competitive, and investor-friendly privatisation programme under Prime Minister Shehbaz Sharif’s economic reform agenda.
Prime Minister’s Adviser on Privatisation Muhammad Ali described the transaction as evidence of Pakistan’s ability to complete complex strategic deals through a transparent and professionally managed process.
He said the agreement reinforces the government’s commitment to fiscal discipline, economic reforms, and greater private-sector participation while strengthening investor confidence in Pakistan.
The adviser also assured that the interests of employees, passengers, and consumers would continue to be protected and that all aviation laws and regulatory oversight would remain fully applicable after the transfer of management.
Prime Minister Welcomes Historic Milestone
Prime Minister Shehbaz Sharif welcomed the completion of the first financial closing and described it as a historic achievement in Pakistan’s privatisation programme.
In a statement shared on social media, the prime minister congratulated the nation and said the successful completion of the first phase represented an important accomplishment for both the government and the people of Pakistan.
He acknowledged the contributions of Deputy Prime Minister Ishaq Dar, Defence Minister Khawaja Asif, Finance Minister Muhammad Aurangzeb, Adviser on Privatisation Muhammad Ali, members of the Cabinet Committee on Privatisation, the Privatisation Commission, and other government institutions involved in completing the transaction.
The government maintains that the privatisation process is intended to place Pakistan International Airlines on a stronger financial footing while improving service quality, operational performance, and long-term sustainability through private-sector investment and management.
