Govt transfers PIA management to investor consortium after first financial close

The government on Monday transferred management control of Pakistan International Airlines Corporation Limited (PIACL) to an investor consortium led by Arif Habib Corporation Limited after achieving the first financial closing of the airline’s privatisation.

The transfer follows the completion of all conditions precedent under the Share Purchase and Subscription Agreement (SPSA), the Privatisation Commission said in a statement.

Under the first closing, the consortium paid Rs10 billion to the government as part of the agreed sale proceeds and injected Rs80 billion into PIACL as fresh equity to strengthen the airline’s finances, support fleet expansion and modernisation, expand its route network and improve operations.

The privatisation transaction, finalised through bidding held on Dec 23, 2025, carries a total investment commitment of Rs180 billion.

This includes Rs55 billion for the government’s stake in PIACL and Rs125 billion in fresh capital for the airline.

The second financial closing is scheduled within 12 months, under which the consortium will inject an additional Rs45 billion into PIACL.

It has also exercised its call option to acquire the remaining 25% stake in the airline for another Rs45 billion, subject to the terms of the SPSA.

The Privatisation Commission said the transaction required completion of multiple conditions, including regulatory approvals, aviation policy reforms, aircraft financing arrangements, governance changes, tax restructuring related to legacy liabilities, and commercial consents.

Adviser to the Prime Minister on Privatisation Muhammad Ali said the transaction reflected the government’s commitment to economic reforms and greater private-sector participation.