Pakistan completes first financial closing of PIA privatization, transfers management to consortium

Pakistan has completed the first financial closing of the privatization of Pakistan International Airlines Corp. Ltd. (PIACL), transferring management control of the national carrier to the Arif Habib-led buyer consortium in a major milestone for the government's economic reform program, the Privatization Commission said Monday.

The commission said all conditions of the share purchase agreement, signed on Jan. 29, 2026, were fulfilled within an exceptionally short timeframe, allowing the first financial closing to be completed while ensuring uninterrupted airline operations and continued passenger services. Following the closing, administrative control of PIACL was formally handed over to the buyer consortium.

According to the commission, the consortium has so far paid the government PKR 10 billion and injected PKR 80 billion in fresh capital into the airline.

The investment is intended to strengthen PIA's financial position, modernize and expand its fleet, and improve operational performance and customer service.

The commission said the consortium plans to invest an additional PKR 45 billion in PIACL before the second financial closing, which is expected within a year. If it exercises its option to acquire the remaining 25% stake, the consortium will pay the government an additional PKR 45 billion. The commission said the consortium has already submitted a written expression of interest to purchase the remaining shares.

The Privatization Commission described the completion of the first financial closing as a significant milestone in Pakistan's privatization program, saying it reflects the government's commitment under Prime Minister Shehbaz Sharif to a transparent, competitive and investor-friendly privatization process.

"This privatization demonstrates Pakistan's ability to execute a complex transaction through a transparent, fair, competitive and professionally managed process," Privatization Adviser Mohammad Ali said.

He said the transaction reinforces the government's commitment to economic reforms, fiscal responsibility and greater private-sector participation while strengthening the confidence of domestic and international investors.

The commission also acknowledged the support of the federal Cabinet, the Privatization Commission Board, the Ministries of Defence and Finance, other government agencies, local regulatory authorities and financial adviser EY Consulting Dubai for their roles in completing the transaction.