Management control handed over as Rs180 billion investment deal moves into execution phase
ISLAMABAD: Pakistan has completed the first closing of the privatisation of Pakistan International Airlines Corporation Limited (PIACL), formally transferring management control of the national carrier to a consortium led by Arif Habib Corporation Limited, the Privatisation Commission said on Monday.
The development marks a key milestone in one of the country’s most significant state-owned enterprise reforms in recent years, advancing the government’s broader agenda to expand private-sector participation in public assets.
According to the Privatisation Commission, the transaction for Pakistan International Airlines Corporation Limited (PIACL) was completed after all conditions precedent under the Share Purchase and Subscription Agreement (SPSA) were fulfilled, enabling the transfer of operational control to the investor consortium.
The deal follows the signing of the agreement on January 29, 2026, and involved the completion of multiple regulatory, financial and restructuring requirements, including approvals from aviation regulators, lessors, financial institutions and relevant domestic authorities.
Officials said the process for Pakistan International Airlines Corporation Limited (PIACL) also included restructuring of legacy tax obligations, aircraft financing arrangements, governance reforms and transaction security mechanisms, while ensuring continuity of airline operations and protection of employees’ interests.
Under the agreement, the consortium for Pakistan International Airlines Corporation Limited (PIACL) committed a total investment of Rs180 billion, of which Rs55 billion represents the purchase price payable to the government, while Rs125 billion is earmarked for restructuring, fleet modernisation, operational expansion and service improvements.
The Commission said Rs10 billion has already been paid to the government as part of the sale consideration, while Rs80 billion has been injected into PIACL as fresh equity to stabilise the airline’s financial position and support early-stage transformation.
The second closing for Pakistan International Airlines Corporation Limited (PIACL) is scheduled within 12 months, during which the consortium is expected to invest an additional Rs45 billion in line with the agreement. The deal also includes a call option allowing the consortium to acquire the remaining 25 per cent stake for Rs45 billion.
Adviser to the Prime Minister on Privatisation Muhammad Ali said the transaction demonstrates Pakistan’s ability to execute complex strategic reforms through a structured and transparent process.
He said the government remains committed to ensuring uninterrupted airline operations, safeguarding consumer interests and maintaining regulatory oversight throughout the transition period.
The Privatisation Commission acknowledged the role of the Cabinet Committee on Privatisation, relevant ministries including Finance and Defence, regulatory bodies and financial advisers led by EY Consulting LLC Dubai in completing the transaction.
Officials said the completion of the first closing represents a major step in restoring efficiency, financial discipline and competitiveness in the national carrier, which has long faced operational and financial challenges.
The government expects the privatisation to improve service delivery, reduce fiscal burden and enhance long-term sustainability of the airline under private-sector management.
