Pakistan on Monday completed the first closing of the privatisation of Pakistan International Airlines Corporation Limited (PIACL), transferring management control of the national carrier to an investor consortium led by Arif Habib Corporation Limited after all conditions under the Share Purchase and Subscription Agreement (SPSA) were fulfilled.
The transaction marks a major step in the government’s economic reform agenda, advancing its plan to expand private-sector participation in key state-owned enterprises while attracting investment and creating employment opportunities. The reform programme has been pursued under the leadership of Prime Minister Shehbaz Sharif, who has consistently advocated a greater role for the private sector in driving sustainable economic growth.
Under the first closing, the investor consortium paid Rs10 billion to the Government of Pakistan as part of the sale proceeds and injected Rs80 billion in fresh equity into PIACL. The investment is intended to strengthen the airline’s financial position, support fleet expansion and modernization, widen its route network, improve operational efficiency and customer service, and position the carrier for long-term growth.
The overall investment commitment made by the consortium following the bidding process held on Dec. 23, 2025, stands at Rs180 billion. Of that amount, Rs55 billion has been earmarked for the acquisition of PIACL, while Rs125 billion will be invested directly into the airline to support its long-term restructuring and revival.
The second closing is scheduled within 12 months of the first closing, in accordance with the SPSA. During that phase, the consortium has committed to inject an additional Rs45 billion into PIACL. It has also exercised its intention to acquire the remaining 25% shareholding in the airline under a call option contained in the agreement, involving an additional payment of Rs45 billion to the government.
Since the SPSA was signed on Jan. 29, 2026, the Privatisation Commission, in collaboration with the Ministry of Defence and other government stakeholders, completed an extensive range of conditions precedent. These included obtaining domestic and international regulatory approvals, securing aircraft lessor and commercial consents, implementing aviation policy reforms, restructuring legacy tax liabilities, arranging aircraft financing, introducing governance reforms, resolving tax-related issues, finalizing airport infrastructure arrangements, and ensuring the investor consortium provided the required transaction security.
The government said the conditions precedent were completed within a compressed timeframe while ensuring uninterrupted airline operations, maintaining aviation certifications and commercial relationships, safeguarding employees’ interests, and preserving passenger services throughout the transition.
Adviser to the Prime Minister on Privatisation Muhammad Ali said the successful completion of the transaction demonstrated Pakistan’s ability to execute complex strategic deals through a transparent, competitive, and professionally managed process. He said the transaction reinforced the government’s commitment to economic reforms, fiscal discipline, and greater private-sector participation while strengthening investor confidence at home and abroad.
The government said it remained committed to protecting the interests of employees, passengers, and consumers during the transition, adding that all applicable aviation laws and regulatory oversight would continue to remain in force.
The Privatisation Commission acknowledged the support of the Federal Cabinet, Deputy Prime Minister Ishaq Dar, the Cabinet Committee on Privatisation, the Privatisation Commission Board, the Ministries of Defence and Finance, other government institutions, regulatory authorities, and the financial advisory consortium led by EY Consulting LLC Dubai for their contributions to the successful completion of the first closing.
The Privatisation Commission described the completion of the first closing as a landmark achievement in Pakistan’s ongoing privatisation programme.