What happened
The Privatisation Commission announced on 29 June 2026 the formal transfer of management control of Pakistan International Airlines Corporation Limited (PIACL) to the investor consortium led by Arif Habib Corporation, after all conditions precedent under the Share Purchase and Subscription Agreement (SPSA) were met, Dawn reported.
The commission said the step completed the privatisation process that began last year. The bidding process, held on 23 December 2025, produced total investment commitments of Rs180 billion, of which Rs55 billion is payable to the government for the sale of PIA and Rs125 billion is to be injected into PIACL to support the airline’s long-term transformation.
Under the first closing, the consortium paid Rs10 billion to the government as sale proceeds and injected Rs80 billion into PIACL as fresh equity. The commission said the money is intended to strengthen the airline’s finances, support fleet expansion and modernisation, widen its route network and improve operational performance and customer service.
A second financial closing is scheduled within twelve months, under which the consortium has committed to invest a further Rs45 billion. The consortium has also signalled its intent to buy the remaining 25 per cent of PIACL shares under a call option in the SPSA for an additional Rs45 billion.
Dawn reported that the new shareholding puts Arif Habib’s Fatima Fertiliser as the lead owner with 34.1 per cent, followed by Fauji Fertiliser with 33.9 per cent, while Lake City, City Schools and AKD Group each hold 16 per cent. The new board chairman, Lt Gen Anwar Ali Haider, said the airline’s responsibility to the people of Pakistan remains paramount.
Why it matters
The transaction is the largest privatisation in Pakistan’s history and closes a process that had been closely watched by investors and lenders. Prime Minister Shehbaz Sharif welcomed the first financial closing and said it sent “a strong signal to domestic and international investors that Pakistan is open for business and committed to reform and growth”, according to Radio Pakistan.
The prime minister said the government remains committed to protecting the interests of employees, passengers and consumers, and to ensuring a smooth transition and uninterrupted airline operations. Adviser to the Prime Minister on Privatisation Muhammad Ali said the transaction demonstrated Pakistan’s ability to execute complex strategic deals through a transparent and competitive process.
What is still uncertain
The full results of the ownership change will depend on delivery of the second closing and the promised fleet and network investments. The consortium has said it intends to buy the remaining state stake, but that option has yet to be exercised, and the government has not said when it expects the second closing to be completed.
Sources & reporting notes
This is a summary of published reporting, not independent reporting. Details are as carried by the cited sources, which were reviewed on 2026-06-29.
- Dawn — "Govt formally transfers management control of PIA to Arif Habib-led consortium"29 June 2026 · The first closing, the Rs180bn commitment, the Rs10bn and Rs80bn first-closing payments, the second closing and the new shareholding.
- Radio Pakistan — "PIA's financial closing signals Pakistan's commitment to reform: PM"29 June 2026 · Prime Minister Shehbaz Sharif's statement and the government's commitments on employees, passengers and uninterrupted operations.
