Pakistan has completed the first closing of the privatisation of Pakistan International Airlines Corporation Limited (PIACL), officially transferring management control of the national carrier to an investor consortium led by Arif Habib Corporation Limited.
The Privatisation Commission announced that the first phase was completed after all conditions under the Share Purchase and Subscription Agreement (SPSA), signed on January 29, 2026, were fulfilled.
The transaction marks a key milestone in the government’s economic reform agenda, aimed at increasing private sector participation and attracting investment. The Privatisation Commission credited the leadership of Prime Minister Shehbaz Sharif and acknowledged the support of Deputy Prime Minister Ishaq Dar, the Finance Ministry and other government stakeholders.
The conditions completed before the transfer included domestic and international regulatory approvals, aviation policy reforms, aircraft financing arrangements, corporate governance changes, tax restructuring, airport infrastructure measures and commercial consents, while ensuring uninterrupted airline operations and protecting employees’ interests.
Under the first closing, the consortium paid Rs10 billion to the government as the initial sale proceeds and injected Rs80 billion in fresh equity into PIACL. The investment will be used to strengthen the airline’s financial position, modernise and expand its fleet, widen its route network and improve operational performance and customer service.
The consortium’s total investment commitment stands at Rs180 billion, comprising Rs55 billion for the acquisition of PIACL and Rs125 billion in capital investment to support the airline’s long-term turnaround.
The second closing is scheduled within 12 months, during which the consortium will inject an additional Rs45 billion into PIACL. It has also exercised its intention to acquire the remaining 25% stake in the airline for a further Rs45 billion under a call option included in the SPSA.
Adviser to the Prime Minister on Privatisation Muhammad Ali said the transaction demonstrated Pakistan’s ability to execute complex strategic deals through a transparent and competitive process, reinforcing investor confidence and the government’s commitment to economic reforms.
The Privatisation Commission thanked the Federal Cabinet, participating ministries, regulatory authorities and financial advisers for their role in completing the first phase of the landmark transaction.-ER News Desk
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