ISLAMABAD ( WNAN REOIRT ): The Privatisation Commission of Pakistan today 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).
The successful completion of the First Closing of the PIACL privatisation transaction marks a significant milestone in the Government of Pakistan’s economic reform programme. It reflects the Government’s commitment to implement a transparent, competitive and investor-friendly privatisation agenda under the leadership of the Honourable Prime Minister, Mian Muhammad Shehbaz Sharif, who has consistently championed a greater role for the private sector as a driver of sustainable economic growth, investment and employment.
The Privatisation Commission highly commends the support and guidance of Deputy Prime Minister, Mohammad Ishaq Dar, Finance Minister and Cabinet Committee on Privatisation.
Since execution of the SPSA on 29th January 2026, the Privatisation Commission and other GoP stakeholders including Ministry of Defence, completed a challenging 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 legacy liabilities, aircraft financing arrangements, governance changes, tax-related matters, airport infrastructure arrangements, and the provision of transaction security by the investor consortium.
The Conditions Precedent were completed within an exceptionally compressed timeframe while maintaining uninterrupted airline operations, preserving critical commercial relationships and aviation certifications, protecting employees’ interests, and ensuring continuity of services for passengers throughout the transition.
The bidding process, held on 23rd December, 2025 led to total investment commitment by the consortium of Rs. 180 billion, out of which Rs. 55 billion will be paid to Government of Pakistan for sale of PIACL and Rs.125 billion will be injected into PIACL to support the long-term transformation of PIACL and revive the national carrier to its past glory.
Accordingly following successful achievement of the Conditions precedent, under the First Closing, the Consortium today has completed the following:
• Rs.10 billion paid to the Government of Pakistan as Sale proceeds and
• Rs.80 billion injected into PIACL as fresh equity to strengthen the airline’s financial position, support fleet expansion and modernisation, expand its route network, enhance operational performance and customer service, and position the airline for long-term growth.
The Second Closing is scheduled to take place within twelve months of the First Closing, in accordance with the terms of the SPSA, whereby the consortium has committed to invest a further Rs.45 billion into PIACL. The consortium which has also served its intent to buy the remaining 25% of the PIACL shares as a Call option under the SPSA for an additional payment of Rs.45 billion to the Government of Pakistan.
Speaking on the occasion, Advsior to the Prime Minister on Privatisation, Mr. Muhammad Ali, said:
“This 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 reform, fiscal responsibility and greater private-sector participation while strengthening confidence among domestic and international investors.”
The Government remains committed to protecting the interests of employees, passengers and consumers while ensuring a smooth transition and uninterrupted airline operations. All applicable aviation laws and regulatory oversight will continue to apply.
The Privatisation Commission acknowledges the support of the Federal Cabinet and the contributions of the Privatisation Commission Board, participating ministries particularly Ministry of Defence, Ministry of Finance and other government institutions, local regulatory authorities and the financial advisory consortium – for the transaction -led by EY Consulting LLC Dubai for their contribution and efforts leading to the successful First Closing.
