ISLAMABAD (MNN); Pakistan officially completed the first phase of the privatisation of Pakistan International Airlines Corporation Limited (PIACL) on Monday, transferring management control of the national carrier to the Arif Habib Corporation-led investor consortium after meeting all contractual and regulatory requirements.
The Privatisation Commission announced that the first financial closing of the transaction had been successfully achieved following the fulfilment of all conditions outlined in the Share Purchase and Subscription Agreement (SPSA), signed on January 29, 2026.
Following the transfer of control, the newly constituted PIACL Board appointed Lt Gen (Retd) Anwar Ali Haider, Managing Director of Fauji Foundation, as Chairman of the privatised airline.
The commission acknowledged the support of Prime Minister Shehbaz Sharif, Deputy Prime Minister and Foreign Minister Ishaq Dar, Finance Minister Muhammad Aurangzeb, and other government institutions for facilitating the landmark transaction.
Officials said the privatisation process involved the completion of 40 regulatory, commercial and contractual conditions, including approvals from domestic and international aviation authorities, tax restructuring, governance reforms, corporate restructuring, aircraft financing arrangements, commercial agreements and employee protection measures.
The transaction also required clearances from aviation regulators in Pakistan and abroad, including authorities in Saudi Arabia and Kuwait, to ensure uninterrupted international flight operations after the change in ownership.
In addition, PIACL secured contractual approvals from aircraft lessors, maintenance and technical service providers, fuel suppliers, airline partners and payment service companies, allowing existing commercial arrangements to continue without disruption.
The process also included amendments to the airline’s corporate structure, shareholder approvals, extension of essential services protections, continuation of airport infrastructure agreements and mechanisms for settling legacy financial and tax liabilities.
According to the Privatisation Commission, the winning consortium committed a total investment of Rs180 billion, comprising Rs55 billion for the acquisition of the government’s stake and Rs125 billion in fresh capital to modernise and expand the airline.
As part of the first financial closing, the consortium paid Rs10 billion to the government and injected Rs80 billion into PIACL to strengthen its finances, expand and modernise the fleet, improve operational performance, broaden international and domestic routes and enhance passenger services.
The second financial closing is expected within the next 12 months, during which the consortium will invest an additional Rs45 billion. It has also expressed its intention to acquire the remaining 25 per cent government stake under an agreed call option for another Rs45 billion.
Adviser to the Prime Minister on Privatisation Muhammad Ali described the deal as a milestone that reflected Pakistan’s ability to execute large-scale strategic transactions through a transparent and competitive process while reinforcing investor confidence and supporting economic reforms.
According to the new ownership structure, Fatima Fertilizer holds a 34.1 per cent stake, followed by Fauji Fertilizer with 33.9 per cent, while Lake City, City Schools and AKD Group each own 16 per cent of the consortium.
Speaking after assuming office, Chairman Lt Gen (Retd) Anwar Ali Haider pledged to restore public confidence in the national airline, saying the new management was committed to preserving PIA’s heritage while transforming it into a modern, customer-focused carrier.
