ISLAMABAD/KARACHI: The Privatisation Commission of Pakistan on Monday achieved the first closing of the divestment of Pakistan International Airlines Corporation Limited (PIACL) through privatisation, transferring management control of the airline to the investor consortium led by Arif Habib Corporation Limited, following satisfaction of all conditions precedent under the Share Purchase and Subscription Agreement (SPSA).
Board of Directors Nominees included Lt Gen Anwar Ali Haider (R), Jahangir Peracha, Fauji Foundation, Gohar Ejaz Lakecity Holdings Ltd, Arif Habib Arif Habib Corporation Fazal Sheikh Fatima Group, Aqeel Kareem Dhedhi AKD and Farzana Firoze of City School. Anwer Ali Haider elected As Chairman by the Board of Directors.
Since the execution of the SPSA on 29th January 2026, the Privatisation Commission and other GoP stakeholders, including the Ministry of Defence, have completed a challenging set of Condition Precedents under the SPSA. These included domestic and overseas regulatory approvals, lessors and commercial consents, aviation policy reforms, corporate approvals, restructuring of taxation relating to legacy liabilities, aircraft financing arrangements, governance changes, tax-related matters, airport infrastructure arrangements, and the provision of transaction security by the investor consortium.
The bidding process, held on 23rd December, 2025, led to a total investment commitment by the consortium of Rs180 billion.
The second closing is scheduled to take place within 12 months of the first closing, in accordance with the terms of the SPSA, whereby the consortium has committed to invest a further Rs45 billion into PIACL.
The consortium has also served its intent to buy the remaining 25 percent of the PIACL shares as a call option under the SPSA for an additional payment of Rs45 billion to the Government of Pakistan.
Speaking on the occasion, Advisor to the Prime Minister on Privatisation, Muhammad Ali, said that the transaction demonstrates Pakistan’s ability to execute complex strategic transactions through a transparent, fair, competitive, and professionally managed process.
“It reinforces the government’s commitment to economic reforms, fiscal responsibility, and greater private-sector participation while strengthening confidence among domestic and international investors,” he added.
On the other hands, PIA Equity Ltd, a special purpose vehicle assembled by the Arif Habib Consortium, formally assumed ownership of Pakistan International Airlines (PIA) in a transaction valued at approximately Rs180 billion, marking the end of decades of state control over the country’s flagship carrier.
According to the official details, the handover was contingent on clearances from global lenders and tax concession arrangements, both of which were prerequisites to closing the deal. The entity now holds 100 percent private ownership of Pakistan International Airlines Corporation Limited (PIACL).
Of the total transaction value, Rs55 billion constitutes direct divestment proceeds to the government. The remaining Rs125 billion is structured as fresh equity injected into PIACL, earmarked for operational restructuring, fleet renewal, route expansion, and service improvements. Legacy liabilities have been addressed within the deal structure, and the consortium has described itself as fully capitalised ahead of assuming operational control.
Chairman of the new ownership emphasised that while the corporate structure has evolved, the airline’s fundamental responsibility to the people of Pakistan remains paramount. He said, “As the new ownership officially takes over today, we deeply understand that the trust of a nation isn’t simply transferred on a document. Trust is earned—mile by mile, smile by smile, year by year. We know this. And we accept the challenge wholeheartedly.”
Copyright Business Recorder, 2026