PSX marks PKR 135 Billion PIA privatization in landmark deal

The Pakistan Stock Exchange (PSX) on Thursday held a gong ceremony to mark the privatization of Pakistan International Airlines, a landmark transaction valued at PKR 135 billion and the first major divestment of a state-owned enterprise in nearly two decades.

Muhammad Ali, adviser to the prime minister on privatization and chairman of the Privatization Commission of Pakistan, attended the ceremony along with senior regulators, business leaders and capital market officials.

The transaction drew strong investor interest, with bids totaling about PKR 250 billion (approximately $900 million), underscoring growing confidence in the government’s privatization program, officials said.

Ali said the deal reflected the government’s commitment to a transparent, competitive and market-driven privatization process. He said restructuring loss-making state-owned enterprises was essential for fiscal stability and economic revival, adding that the PIA transaction would help reduce pressure on the national exchequer and restore investor confidence.

Muhammad Ali Farid Khwaja, commissioner of the Securities and Exchange Commission of Pakistan, said strengthening capital markets was critical for sustainable economic growth, policy transparency and long-term investor confidence.

Arif Habib, chairman of the Arif Habib Group, described the transaction as historic. Of the total value, PKR 55 billion will go to the government, while PKR 125 billion will be invested to support PIA’s future growth and expansion, he said. The investment would bolster the airline and contribute to broader economic development.

Aqeel Karim Dhedhi, chairman of the AKD Group, called the privatization a benchmark among state-owned enterprises. He credited former caretaker finance minister Shamshad Akhtar for restructuring PIA’s guarantees and said Ali’s leadership and efforts to build investor confidence were instrumental in completing the deal. He added that continued policy consultation with capital market stakeholders would be vital to ensure sustainable reforms.

PSX Chief Executive Farrukh H. Sabzwari said the ceremony reflected Pakistan’s economic transformation. He noted that the privatization coincided with the country’s transition to a T+1 settlement system, placing Pakistan among the top 10 countries globally to adopt the mechanism.

He said both the PIA transaction and a recent rally in the stock market signaled the strength and depth of the local investor base, with nearly $1 billion committed by domestic investors in the PIA deal alone.

The ceremony also highlighted PIA’s history. Founded as Orient Airways in 1946, the carrier became Pakistan’s national airline in 1955. It was the first Asian airline to introduce jet service in 1960 and the first non-Communist airline to fly to China in 1964.

Officials said the privatization opens a new chapter for the airline, positioning it for renewed growth and competitiveness.