Pakistan hands PIA control to private owners in landmark privatization

Pakistan formally transferred management control of its national carrier, Pakistan International Airlines (PIA), to a private consortium on Monday, ending decades of government control over an airline that had long weighed on the country's finances.

The transfer marks Pakistan's first successful privatization since 2005 and is being described as the largest privatization deal in the country's history.

Management control was handed over to PIA Equity Limited, a company managed by the Arif Habib Consortium, during a ceremony attended by Prime Minister Shehbaz Sharif, Field Marshal Asim Munir and Deputy Prime Minister Ishaq Dar.

The new administration appointed Lt. Gen. (retd) Anwar Ali Haider, managing director of the Fauji Foundation, as PIA's first chairman under private ownership. The consortium's representatives on the airline's board include Arif Habib, Gohar Ejaz, Fazal Sheikh, Aqeel Karim Dhedhi and Farzana Feroze.

According to the Privatization Commission, the government had to fulfill 40 conditions before completing the transaction. These included regulatory approvals in Pakistan and abroad, as well as legal, commercial, tax, shareholding, leasing and corporate governance requirements.

Officials said the approvals were necessary to ensure that PIA could continue operating without legal or operational disruptions after the ownership transfer.

The privatization stems from a bidding process completed in December 2025, when the consortium pledged to invest 180 billion Pakistani rupees ($636 million). Under the agreement, 55 billion rupees ($194 million) was paid to the government for the acquisition, while 125 billion rupees ($442 million) is to be invested directly into the airline.

In April, the consortium also acquired the government's remaining 25% stake in PIA for 45 billion rupees ($159 million), making the airline fully privately owned. The new management aims to expand PIA's fleet to 50 aircraft by September 2026.

On his program On My Radar, Kamran Khan said the privatization represented more than a corporate transaction, calling it an important test of investor confidence in Pakistan.

He said that if the model succeeds, the promised investment is delivered on schedule and the airline's performance improves, the deal could serve as a positive example for future privatizations in the country.

Former Federal Minister for Industries and Commerce Gohar Ejaz also commented on the development during the program.