Pakistan International Airlines Holding Company Limited (PIAHCL) has approved a Scheme of Arrangement to transfer its Precision Engineering Complex (PEC) business unit to a new entity under the Pakistan Air Force (PAF), in line with federal government directives.
The decision was disclosed in a notice to the Pakistan Stock Exchange (PSX) on Wednesday following the 16th board meeting held in Islamabad on September 23, 2025. The transfer will involve the PEC being carved out from PIAHCL and moved to Precision Engineering Complex (Private) Limited, a PAF-controlled entity, with necessary filings to be made with the Securities and Exchange Commission of Pakistan (SECP).
The PEC, located at Pakistan International Airlines (PIA), manufactures high-precision parts for the aerospace and other industries. It serves global clients such as General Electric, Airbus Industries, and Boeing, and includes capabilities in investment casting, machining, optics, electrical and electronics, and composites.
PIA’s restructuring is part of broader efforts to privatize the national carrier, a key condition of Pakistan’s $7-billion bailout from the International Monetary Fund (IMF). The national airline recently reported its first pre-tax profit in two decades and is planning to resume direct flights to Britain, one of its most profitable routes, next month. Additionally, interest in PIA’s privatization has come from several domestic business groups, including Airblue, Lucky Cement, and Fauji Fertilizer.
