Islamabad: PIA privatisation reached its first financial closing on Monday. The Privatisation Commission transferred management control to an Arif Habib Corporation-led investor consortium.
The Privatisation Commission said Pakistan received Rs 10 billion in initial sale proceeds. This was after conditions under the Share Purchase and Subscription Agreement were met.
The Commission said the consortium also injected Rs80 billion into Pakistan International Airlines Corporation Limited as fresh equity.
The transaction carries a total investment commitment of Rs180 billion. This includes Rs55 billion in sale proceeds and Rs125 billion for PIACL’s restructuring, fleet expansion and modernisation.
The bidding process was held on December 23, 2025. Meanwhile, the Share Purchase and Subscription Agreement was executed on January 29, 2026, according to the Commission.
The second closing is scheduled within 12 months, when the consortium is due to inject another Rs45 billion into PIACL.
The Privatisation Commission said the consortium had also served notice of intent to buy the remaining 25% of PIACL shares. This would be for an additional Rs45 billion under a call option.
Prime Minister Muhammad Shehbaz Sharif welcomed the first financial closing and called it a milestone in Pakistan’s privatisation history. This was according to the Prime Minister’s Office statement.
Read: President Zardari Approves PIA Privatisation Bill For Asset Transfer
The prime minister commended Deputy Prime Minister Mohammad Ishaq Dar, Defence Minister Khawaja Asif, Finance Minister Muhammad Aurangzeb, Advisor on Privatisation Muhammad Ali and Field Marshal Syed Asim Munir for their role in the transaction.
The Commission said domestic and overseas regulatory approvals, lessor consents, aviation policy reforms, taxation matters, aircraft financing arrangements and airport infrastructure arrangements were completed before closing.
It said airline operations, aviation certifications, employee interests and passenger services were maintained during the transition.
