ISLAMABAD (Kashmir English): The Privatisation Commission of Pakistan on Monday announced the formal transfer of management control of Pakistan International Airlines Corporation Limited (PIACL) to the Arif Habib Corporation-led consortium, completing the first financial closing of the PIA’s privatisation.
“This milestone demonstrates Pakistan & Privatisation Commissions’ commitment to structure complex transactions through a transparent, fair and competitive process,” the Ministry of Privatisation said in a post on X.
The transaction brings a total investment commitment of Rs 180 billion, including Rs 125 billion in fresh capital, which will be injected into PIACL to support the long-term transformation of PIACL and revive the national carrier to its past glory, and Rs 55 billion payable to the Government of Pakistan, the commission said.
The press release issued by the Commission stated that it has achieved the First Closing of the divestment of PIACL through privatisation, following satisfaction of all conditions precedent under the Share Purchase and Subscription Agreement (SPSA).
The successful completion of the first closing of the PIACL privatization transaction marks a significant milestone in the government’s economic reform program, said a press release.
Today, Privatisation Commission has successfully completed the largest privatisation transation – First Financial Close of the PIA’s privatisation.
This milestone demonstrates Pakistan & Privatisation Commissions’s committement to structure complex transactions through a…— Ministry of Privatisation, Government of Pakistan (@PrivComPakistan) June 29, 2026
The Privatisation Commission highly commended the support and guidance of Deputy Prime Minister, Mohammad Ishaq Dar, Finance Minister, and the Cabinet Committee on Privatisation, it added.
“Since execution of the SPSA on January 29, 2026, the Privatisation Commission and other GoP stakeholders, including the Ministry of Defence, completed a challenging Condition Precedents under the SPSA,” the PC said.
It further added that “these included domestic and overseas regulatory approvals, lessors and commercial consents, aviation policy reforms, corporate approvals, restructuring of taxation relating to legacy liabilities, aircraft financing arrangements, governance changes, tax-related matters, airport infrastructure arrangements, and the provision of transaction security by the investor consortium.”
There were a total of 40 Conditions Precedents in regulatory, commercial, and contractual consents, taxation matters, shareholders’ restructuring, rental arrangements, and governance matters, it stated.
Speaking on the occasion, Advisor to the Prime Minister on Privatization, Muhammad Ali, said that this transaction demonstrates Pakistan’s ability to execute complex strategic transactions through a transparent, fair, competitive, and professionally managed process.
It reinforces the Government’s commitment to economic reform, fiscal responsibility, and greater private-sector participation while strengthening confidence among domestic and international investors.
In a post on X, the Chairman of PIA Equity Ltd said, “As the new ownership officially takes over today, we deeply understand that the trust of a nation isn’t simply transferred on a document.”
“Trust is earned—mile by mile, smile by smile, year by year. We know this. And we accept the challenge wholeheartedly,” the statement from PIA added.
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
PM welcomes financial closing of PIA
Prime Minister Muhammad Shehbaz Sharif has welcomed the First Financial Closing of Pakistan International Airlines Corporation Limited (PIACL) and “greeted the nation on this historic milestone in the privatization history of Pakistan”, according to the press release issued by the Prime Minister’s Office (PMO).
The successful completion of the First Closing of the PIA privatisation transaction is a moment of real satisfaction for my government and for the people of Pakistan, said the Prime Minister.
Furthermore, the premier said that it demonstrates that complex, strategic transactions can be delivered transparently, competitively, and on time through teamwork and “Whole of the Government Approach”.
More importantly, it opens a new chapter for PIA, and for our broader economic reform agenda, he added.
“Today’s milestone achievement sends a strong signal to domestic and international investors: Pakistan is open for business, committed to reform, and ready for growth.”
PM Shehbaz added that with this First Closing, we move closer to reviving PIA to its past glory, adding that the government remains committed to protecting the interests of employees, passengers, and consumers while ensuring a smooth transition and uninterrupted airline operations.
In addition, the Prime Minister commended the role and hard work of Deputy Prime Minister Mohammad Ishaq Dar.
The Prime Minister paid tribute to Field Marshal Syed Asim Munir and his dedicated team for their teamwork.
PM also “commended the role of Minister for Defence Khawaja Asif, Finance Minister Muhammad Aurangzeb, Advisor on Privatization Muhammad Ali, and members of the Cabinet Committee on Privatization and Privatisation Commission in making this transaction a success.”
