President approves repeal bill, clearing final hurdle for PIA privatisation

President Asif Ali Zardari on Friday signed the Pakistan International Airlines Corporation (Conversion) (Repeal) Bill, 2026, completing the legal process required for the privatisation of Pakistan International Airlines Company Limited (PIACL).

According to a statement issued by the Presidency, the approval fulfils all legal formalities necessary for the completion of the airline's privatisation process.

The repeal bill abolishes the Pakistan International Airlines Corporation (Conversion) Act, 2016, which had converted the national flag carrier into a public limited company.

The legislation was passed by the Senate on June 10 and approved by the National Assembly on June 11 before being sent to the president for assent.

The development follows the successful sale of a 75% stake in PIACL to a consortium led by Arif Habib Corporation Limited, which submitted a winning bid of Rs135 billion in December last year.

Transaction documents related to the deal were signed in January during a ceremony attended by Prime Minister Shehbaz Sharif.

The consortium has announced plans to revive the airline through operational restructuring, fleet expansion and improvements in customer service. It has also expressed interest in acquiring the government's remaining 25% stake to gain full management control.

Arif Habib has previously stated that the privatisation would support business expansion and create additional employment opportunities within the airline.

Following the sale, Adviser to the Prime Minister on Privatisation Muhammad Ali said the new owners would be required to retain all employees for at least 12 months after the transaction, with existing employment contracts remaining unchanged.

Fauji Fertiliser, which initially participated in the bidding process independently, later joined the consortium led by Arif Habib Corporation Limited.