Govt transfers control of PIA management to buyer consortium

ISLAMABAD: The federal government on Monday transferred the management control of Pakistan International Airlines Corporation Limited (PIACL) to the buyer consortium, marking the completion of the first financial closing under the national carrier's privatization.

The Privatization Commission of Pakistan announced that the first financial closing under the PIACL privatization transaction had been completed, following which the airline's administrative control was formally handed over to the buyer consortium.

The airline will now be managed by PIA Equity Ltd, a special purpose vehicle (SPV) of the Arif Habib-led consortium. According to the new owners, the transition followed the completion of all required local and international regulatory approvals, including permissions from global lenders and relevant tax concessions.

The commission described the successful completion of the first financial closing as a significant milestone in the Government of Pakistan's economic reform agenda and said it reflected the government's commitment to implementing a transparent, competitive and investor-friendly privatization programme under the leadership of Prime Minister Shehbaz Sharif.

According to the commission, all conditions of the Share Purchase Agreement signed on January 29, 2026, were fulfilled within an exceptionally short timeframe. Throughout the transition process, uninterrupted airline operations were maintained, ensuring continuity of services for passengers.

The buyer consortium has so far paid Rs10 billion to the Government of Pakistan and injected Rs80 billion in fresh investment into PIA.

The new investment is aimed at strengthening the airline's financial position, expanding and modernizing its fleet, improving operational efficiency and enhancing customer service.

The Privatization Commission said the buyer consortium would make an additional investment of Rs45 billion in PIACL before the second financial closing, expected within one year.

It added that if the consortium exercises its option to purchase the remaining 25 percent shares of PIACL, it will pay another Rs45 billion to the Government of Pakistan.

The consortium has already submitted a written indication expressing its intention to acquire the remaining 25 percent stake.

Commenting on the development, Prime Minister's Adviser on Privatization Muhammad Ali said the transaction demonstrated Pakistan's ability to execute complex privatization deals through a transparent, fair, competitive and professionally managed process.

"This privatization reinforces the government's commitment to economic reforms, fiscal responsibility and greater private sector participation, while strengthening the confidence of both domestic and international investors," he said.

In a separate statement, the new ownership said it was committed to modernizing the national carrier while preserving its legacy and improving service standards. It said the fresh capital would support operational restructuring, fleet renewal, route expansion and product improvements.

The chairman of the new ownership said the consortium recognized that public confidence in the airline would have to be earned through consistent performance and pledged to build a modern aviation experience while maintaining PIA's longstanding heritage.

The Privatization Commission acknowledged and thanked the Federal Cabinet, the Privatization Commission Board, partner ministries, particularly the Ministries of Defence and Finance, other government institutions, local regulatory authorities and its financial adviser, EY Consulting Dubai, for their support, guidance and contributions in successfully completing the transaction.