In line with directives from the federal government, the Board of Directors of Pakistan International Airlines Holding Company Limited (PIAHCL) has approved a Scheme of Arrangement for the transfer of its Precision Engineering Complex (PEC) business unit to a new entity under the Pakistan Air Force (PAF).
PIAHCL disclosed the development in its notice to the Pakistan Stock Exchange (PSX) on Wednesday.
PIAHCL is a public limited company currently majority-owned by the Government of Pakistan (GoP).
The company was established to succeed in specified assets, liabilities, and subsidiaries of Pakistan International Airlines Corporation Limited (PIACL), including specific business, property, rights, liabilities, and obligations of PIACL.
As per the notice, the decision was taken at the PIAHCL’s 16th board meeting held in Islamabad on September 23, 2025.
According to the company, the scheme has been drafted under the provisions of Sections 279 to 283 and 285(8) of the Companies Act, 2017.
Under the plan, the Precision Engineering Complex will be carved out from PIAHCL and transferred to Precision Engineering Complex (Private) Limited, a designated PAF-controlled entity, “along with its ancillary modalities, to be filed with the Securities and Exchange Commission of Pakistan (SECP)”.
The PEC at Pakistan International Airlines (PIA) manufactures high-precision parts for the aerospace industry and other industries.
It is an integrated facility that houses major engineering disciplines under one roof, including investment casting, conventional and CNC machining, optics, PCB, electrical, electronics and composites.
The PEC is a supplier to the USA and Europe and serves companies such as General Electric, Airbus Industries and Boeing.
Earlier during the day, PIA announced it would resume direct flights next month on its most profitable route to Britain.
It is pertinent to mention that the privatisation of the national carrier is a key condition of Pakistan’s $7-billion bailout by the International Monetary Fund (IMF).
This month, PIA reported its first pre-tax profit in two decades.
Islamabad has drawn interest in the national carrier from five domestic business groups, including Airblue, Lucky Cement, investment firm Arif Habib, and Fauji Fertilizer.
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