Summary Pakistan transfers PIA's administrative control to the buyer consortium after the first financial closing, with Rs80 billion invested and further funding planned under privatisation.
ISLAMABAD (Dunya News) – The Privatisation Commission of Pakistan on Monday completed the first financial closing of the privatisation of Pakistan International Airlines Corporation Limited (PIACL), formally transferring management control of the national carrier to an investor consortium led by Arif Habib Corporation Limited.
According to the commission, the handover took place after all conditions outlined in the Share Purchase and Subscription Agreement (SPSA), signed on January 29, 2026, were fulfilled. Officials described the development as a major milestone in the government's economic reform and privatisation agenda.
The commission said the transaction reflects the government's commitment to a transparent, competitive and investor-friendly privatisation process aimed at boosting private-sector investment and supporting long-term economic growth.
The investor consortium had secured the winning bid during the privatisation process held on December 23, 2025, committing a total investment of Rs180 billion. Under the agreement, Rs55 billion will be paid to the government for the acquisition of PIACL, while Rs125 billion will be invested directly into the airline to improve its financial health, modernise operations and expand its services.
As part of the first financial closing, the consortium has paid Rs10 billion to the government and injected Rs80 billion into PIACL as fresh equity. The funds will be used to strengthen the airline’s finances, modernise its fleet, expand domestic and international routes, improve operational efficiency and enhance customer services.
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
The second financial closing is expected within the next 12 months, during which the consortium will invest an additional Rs45 billion in the airline. The investors have also formally expressed their intention to acquire the remaining 25 per cent stake in PIACL through the call option under the SPSA, which would result in an additional payment of Rs45 billion to the government.
The Privatisation Commission said several complex requirements were completed before the transfer of management, including regulatory approvals in Pakistan and abroad, aircraft leasing and financing arrangements, aviation policy reforms, tax restructuring, corporate approvals, governance changes and airport-related agreements.
Despite the extensive process, officials said airline operations continued without disruption, commercial partnerships remained intact, employees' interests were protected and passenger services were maintained throughout the transition.
Prime Minister's Adviser on Privatisation Muhammad Ali said the successful transaction demonstrated Pakistan's ability to complete large-scale strategic deals through a transparent and professionally managed process. He said the privatisation reinforces the government's commitment to economic reforms, fiscal discipline and increased private-sector participation while strengthening investor confidence.
The commission also acknowledged the support of Deputy Prime Minister Ishaq Dar, the federal cabinet, the Cabinet Committee on Privatisation, the Ministry of Defence, the Ministry of Finance, other government institutions, regulatory authorities and financial advisers, including EY Consulting LLC Dubai, for their role in completing the first phase of the transaction.
