Government to hand over PIA to new owners on May 25

The federal government is expected to formally transfer control of Pakistan International Airlines (PIA) to its new owners, Arif Habib-led consortium, on May 25, 2026, as the privatisation process of the state-owned carrier enters its final phase with major procedural and regulatory requirements already completed.

Sources said preparations linked to the transfer of ownership had been finalised, while the airline’s board had also completed its final phase in an official capacity.

Officials added that PIA’s financial position had improved after restoration of routes to Europe and the United Kingdom, which helped strengthen investor confidence during the privatisation process.

The incoming management is also expected to pursue plans to expand the airline’s fleet size.

Earlier this month, the Arif Habib-led consortium established a special purpose vehicle (SPV), PIA Equity Limited, to acquire 100% ownership of Pakistan International Airlines and submitted a notice of intent backed by a standby letter of credit to exercise its call option for the remaining 25% stake.

The consortium, comprising Arif Habib Corporation, Fauji Fertilizer Company, Fatima Fertilizer, Lake City Holdings, AKD Group and The City School, is working with the Privatisation Commission to complete the acquisition under the government’s broader privatisation programme aimed at reducing reliance on state support and restructuring the airline.