PIACL privatization hits first financial closing milestone

June 29, 2026 (MLN): Pakistan completed the first financial closing of the privatization of Pakistan International Airlines Corp. Ltd. (PIACL), with management control of the national carrier formally transferred to the Arif Habib-led buyer consortium.

The privatization commission said all conditions of the share purchase agreement signed on Jan. 29, 2026 were fulfilled within an exceptionally short timeframe, allowing the closing to be completed while ensuring uninterrupted airline operations and continued passenger services.

Under the transaction, the consortium has paid the government Rs10 billion and injected Rs80 billion in fresh equity into the airline, with the investment aimed at strengthening PIA's financial position, modernizing and expanding its fleet, and improving operational performance and customer service.

The consortium plans to invest an additional Rs45 billion in PIACL before the second financial closing, expected within a year, according to a press release issued.

Should it exercise its option to acquire the remaining 25% stake, the consortium will pay the government a further Rs45 billion.

The commission noted the consortium has already submitted a written expression of interest for the residual shares.

Privatization Adviser Mohammad Ali said the transaction demonstrated Pakistan's ability to execute a complex deal through a transparent, fair, competitive and professionally managed process, adding that it reinforced the government's commitment to economic reforms, fiscal responsibility and greater private-sector participation while strengthening investor confidence domestically and internationally.

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

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.

Copyright Mettis Link News