ISLAMABAD: Pakistan’s Privatisation Commission on Monday announced the formal handover of management control of Pakistan International Airlines Corporation Limited (PIACL) to the Arif Habib Corporation-led consortium, marking the completion of the privatisation process that was initiated last year.
“The government achieves first financial closing of PIACL privatisation transaction with management control transferred to the investor consortium following satisfaction of all conditions precedent under the Share Purchase and Subscription Agreement (SPSA),” said a press release issued by the Privatisation Commission.
Today, Privatisation Commission has successfully completed the largest privatisation transaction – First Financial Close of the PIA’s privatisation.
This milestone demonstrates Pakistan & Privatisation Commission’s commitment to structure complex transactions through a…— Ministry of Privatisation, Government of Pakistan (@PrivComPakistan) June 29, 2026
“Since execution of the SPSA on January 29, 2026, the Privatisation Commission and other GoP stakeholders, including the Ministry of Defence, completed challenging Conditions Precedent under the SPSA,” the Privatisation Commission said.
“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,” the statement said.
A total of 40 conditions precedent were fulfilled, covering regulatory, commercial, and contractual approvals, taxation matters, shareholder restructuring, rental arrangements, and governance requirements.
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
On the regulatory front, the transaction required a range of approvals, notifications, and confirmations from various regulatory bodies. These included aviation-related clearances from the Pakistan Civil Aviation Authority, merger control filings with the Competition Commission of Pakistan, and change-of-control approvals involving the Pakistan Telecommunication Authority.
Given PIACL’s international operations, the process also involved coordination with foreign aviation regulators and safety authorities. These regulatory approvals were essential to ensure the uninterrupted continuation of PIACL’s operations under applicable licenses and permissions following the first closing of the transaction.
“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,” Advisor to the Prime Minister on Privatisation Muhammad Ali said.
Major milestone
Prime Minister Shehbaz Sharif on Monday described the development as a major milestone in Pakistan’s economic reform process.
In a statement on X, the prime minister said the privatisation deal marked the beginning of a new phase for the national flag carrier, with plans for transformational investment aimed at modernising and strengthening PIA while boosting investor confidence in Pakistan.
Alhamdulillah! Today marks another important milestone in Pakistan’s economic reform journey.
The successful First Financial Closing of the PIA privatisation transaction, and the transfer of management control to the investor consortium, marks the beginning of a new chapter for…
— Shehbaz Sharif (@CMShehbaz) June 29, 2026
“With a transformational investment to modernise and strengthen PIA, we are laying the foundation for its revival while reinforcing investor confidence in Pakistan,” he said.
Deputy Prime Minister and Foreign Minister Ishaq Dar said this complex transaction was completed through hard work, sincerity, efficiency and close coordination across Government institutions, reinforcing this Government’s commitment to transparent governance, economic reforms and investor confidence.
“I congratulate the Prime Minister and the entire Nation for the first successful Financial Close of the PIA privatisation transaction, which is in itself a landmark achievement for Pakistan,” he said.
I congratulate the Prime Minister and the entire Nation for first successful Financial Close of the PIA privatisation transaction which is in itself a landmark achievement for Pakistan.
This complex transaction was completed through hard work, sincerity, efficiency and close…
— Ishaq Dar (@MIshaqDar50) June 29, 2026
In December last year, the government completed the sale of a 75% stake in Pakistan International Airlines (PIA) to a consortium led by Arif Habib for Rs10.1 billion in cash, marking the country’s first major privatisation transaction in nearly two decades.
The Arif Habib-led consortium, comprising prominent business figures including Fawad Ahmed Mukhtar, Gohar Ejaz, and Aqeel Karim Dhedhi, secured the controlling stake after submitting the highest bid of Rs135 billion during the 13th round of an open auction. The consortium outbid a rival group led by Muhammad Ali Tabba.
The successful sale came after a second attempt by the government to privatise PIA within more than a year and represented the first major privatisation deal since 2005, when the government sold K-Electric, one of Pakistan’s largest power distribution companies. Prime Minister Shehbaz Sharif had earlier expressed a desire to secure a valuation of around Rs200 billion for the national carrier.
