First phase of privatisation transfers controlling stake to investor consortium following fresh equity injection
ISLAMABAD: Pakistan’s privatisation of Pakistan International Airlines Corporation Limited (PIACL) has reached a major milestone after the successful completion of the first phase of the transaction, transferring a controlling stake in the national carrier to the successful bidder consortium.
In a notification submitted to the Pakistan Stock Exchange (PSX), PIA Holding Company Limited (PIAHCL) said the First Completion under the Share Purchase and Subscription Agreement (SPSA), signed on January 29, 2026, was successfully completed on June 29, 2026.
Buyer Acquires 66.67% Stake in PIACL
Following the First Completion, PIA Equity Limited, a special purpose vehicle established by the successful bidder consortium, now owns 66.67% of the issued and paid-up share capital of PIACL.
PIA Holding Company Limited has retained the remaining 33.33% shareholding in the national airline.
The new ownership structure gives the investor consortium management control of PIACL, marking a significant step in the government’s privatisation programme.
Fresh Equity Injected into National Carrier
As part of the First Completion, the consortium injected the agreed first tranche of the subscription amount into PIACL as fresh equity capital.
The airline issued new shares in accordance with the terms of the Share Purchase and Subscription Agreement, strengthening its capital base following the transfer of control.
The fresh investment is expected to support PIACL’s financial restructuring, operational improvements, fleet modernisation and long-term business transformation.
Key Milestone in Privatisation Programme
The successful completion of the first phase represents a major achievement in Pakistan’s efforts to privatise the loss-making national airline through private sector participation.
The government expects the transaction to improve corporate governance, enhance operational efficiency and reduce the financial burden associated with the airline.
PIAHCL had previously informed investors in December 2025 that the privatisation process was advancing after the government accepted the successful bid for a majority stake in PIACL.
Outlook
With the first phase now completed, the investor consortium has formally assumed a controlling interest in Pakistan International Airlines Corporation Limited.
The capital injection and transfer of management control are expected to lay the foundation for the airline’s restructuring and future growth, while supporting the government’s broader economic reform and privatisation agenda.