PIACL gets first fresh equity injection as privatisation deal moves forward 

PIA Holding Company Limited (PIAHCL) has informed the Pakistan Stock Exchange (PSX) that the agreed first tranche of the subscription amount has been injected into Pakistan International Airlines Corporation Limited (PIACL) as fresh equity capital against the issuance of new shares, marking the first completion under the airline’s privatisation agreement.

In a material information notice, PIAHCL said the first completion under the Share Purchase and Subscription Agreement (SPSA), executed on January 29, 2026, took place on June 29, 2026.

Following the implementation of the share transfer and equity subscription under the SPSA, PIA Equity Limited, the special purpose vehicle established by the successful bidder consortium, now holds 66.67% of PIACL’s issued and paid-up share capital. PIAHCL retains the remaining 33.33%.

The company said the latest disclosure was in continuation of its December 24, 2025, announcement regarding the privatisation of PIACL. 

The first completion follows the transfer of management control of PIACL to the investor consortium led by Arif Habib Corporation Limited after the satisfaction of conditions precedent under the SPSA, according to the Privatisation Commission. 

The Privatisation Commission said the conditions completed after the signing of the SPSA included domestic and overseas regulatory approvals, lessor and commercial consents, aviation policy reforms, corporate approvals, restructuring of taxation related to legacy liabilities, aircraft financing arrangements, governance changes, airport infrastructure arrangements and transaction security by the investor consortium. 

Under the first closing, the consortium paid Rs10 billion to the Government of Pakistan as sale proceeds and injected Rs 80 billion into PIACL as fresh equity. The fresh equity is meant to strengthen the airline’s financial position, support fleet expansion and modernisation, expand its route network, improve operational performance and customer service, and support long-term growth.

The bidding process held on December 23, 2025, resulted in a total investment commitment of Rs180 billion by the consortium, comprising Rs55 billion payable to the Government of Pakistan for the sale of PIACL and Rs125 billion to be injected into PIACL for its long-term transformation. 

The second closing is scheduled within 12 months of the first closing under the SPSA. At that stage, the consortium has committed to invest another Rs45 billion into PIACL. The consortium has also served its intent to buy the remaining 25% of PIACL shares through a call option under the SPSA for an additional Rs45 billion payable to the Government of Pakistan. 

In December 2025, a consortium led by Arif Habib Corporation submitted the highest bid of Rs135 billion for a 75% stake in PIA, above the government’s minimum price of Rs100 billion and the base price of Rs115 billion at which the auction began.