First closing of PIA: PM terms it ‘another important milestone’
ISLAMABAD: Prime Minister Shehbaz Sharif on Monday said Pakistan had reached “another important milestone” in its economic reform programme following the first financial closing of the Pakistan International Airlines (PIA) privatisation deal and the transfer of management control to a consortium of investors.
In a statement, the prime minister said the transaction marked the start of a “new chapter” for the state-owned national carrier, adding that the entry of private investment would help modernise and strengthen PIA after years of financial strain and operational decline.
He said the government viewed the deal as a key step in restoring confidence among investors, arguing that structural reforms and privatisation efforts were essential to stabilising the wider economy and improving governance in loss-making state enterprises.
“Alhamdulillah, today marks another important milestone in Pakistan’s economic reform journey,” the prime minister said, describing the development as a turning point in the government’s broader reform agenda.
The prime minister said the transformational investment associated with the transaction would support efforts to overhaul the airline’s operations, improve efficiency and rebuild its competitiveness in the aviation sector.
He added that the reforms were aimed at placing PIA on a “sustainable footing” while signalling to international and domestic investors that Pakistan remained committed to economic restructuring.
The prime minister praised senior officials and institutions involved in finalising the deal, commending Deputy Prime Minister and Foreign Minister Ishaq Dar, and paying tribute to Chief of Defence Forces (CDF) and Field Marshal Asim Munir, along with his team, for their role in supporting the process.
He also acknowledged the contribution of Adviser to the Prime Minister on Privatisation Muhammad Ali, Finance Minister Muhammad Aurangzeb, the Privatisation Commission, and other officials involved in completing what he described as a landmark transaction.
The government has in recent months accelerated efforts to sell or restructure loss-making state entities as part of a wider reform programme supported by international lenders.
Officials say the privatisation of PIA is intended to reduce fiscal pressure on the state while improving service delivery and operational performance.
PM Shehbaz said his administration would continue to pursue “bold reforms” aimed at strengthening the economy, creating jobs and securing long-term prosperity for Pakistan.
The control of PIA was transferred to a consortium led by Arif Habib Corporation Ltd after completion of the first financial closing and fulfillment of all conditions under the Share Purchase and Subscription Agreement.
Copyright Business Recorder, 2026