PIA privatisation payment timeline slips as Rs83 billion not received: report

The government’s timeline for payments under the privatisation of Pakistan International Airlines has shifted, with the expected Rs83 billion payment from the winning consortium yet to be deposited, The News reported. 

At the December 23, 2025, bidding, the Privatisation Commission had stated that of the Rs135 billion winning bid, Rs10.125 billion would go to the national exchequer, while the remaining Rs125 billion would be paid in tranches, with two-thirds due within 90 to 120 days and the balance within a year. That schedule pointed to late April as a key milestone.

Four months after the bidding, the expected payment has not been received.

However, Privatisation Commission Chairman Muhammad Ali said there was no fixed deadline of April 28 and that financial close is now expected next month. He said there was no delay in the takeover process and that the consortium would assume control once financial close is completed.

Ali added that the consortium has not sought any extension or invoked force majeure. He attributed the delay to pending conditions precedent, including approvals from aircraft lessors, regulators and competition authorities, which are in process.

On the remaining 25% government stake, he said the consortium has submitted its intent along with a standby letter of credit, and the commission is reviewing legal requirements.

The Arif Habib-led consortium, which secured the bid, did not comment on the development.

The transaction is being monitored as part of structural reform commitments under the IMF programme.