Pakistan completed the first financial closing of the privatization transaction 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 of the government’s economic reform program, the Privatization Commission said on 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 purchaser consortium.
According to the commission, the consortium has so far paid the government Rs. 10 billion, injecting Rs. 80 billion in fresh capital into the airline. The investment aims to strengthen PIA’s financial position, modernize and expand its fleet, and improve operational performance and customer service.
The statement said the consortium plans to invest an additional Rs. 45 billion in PIACL before the second financial closing, expected within a year. If it exercises its option to acquire the remaining 25% stake, the consortium will also pay the government an additional Rs. 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 reflected 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,” said adviser Mohammad Ali. 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 defense and finance, other government agencies, local regulatory authorities and financial adviser EY Consulting Dubai for their roles in completing the transaction.
The bidding for the PIACL occurred on Dec. 23, 2025, resulting in a total investment commitment by the consortium of Rs. 180 billion, Rs. 55 billion of which accounts for the sale. The remaining Rs. 125 billion is to be injected into PIACL to support its long-term transformation and revive the national carrier to its past glory.
Prime Minister Shehbaz Sharif welcomed the financial closing, declaring it a historic milestone in the privatization history of Pakistan. “The successful completion of the First Closing of the PIA privatization transaction is a moment of real satisfaction for my government and for the people of Pakistan,” he wrote on X.
The premier also commended the role and hard work of Deputy Prime Minister and Foreign Minister Ishaq Dar and paid tribute to Field Marshal Asim Munir and his dedicated team for this teamwork. He further commended the role of Defense Minister Khawaja Asif, Finance Minister Muhammad Aurangzeb, Adviser on Privatization Muhammad Ali and members of the Cabinet Committee on Privatization and Privatization Commission in ensuring the success of the transaction.