Islamabad, Pakistan: President Asif Ali Zardari has approved the PIA privatisation bill to fulfills a legal requirement for completing the privatisation of Pakistan International Airlines.
The Pakistan International Airlines Corporation (Conversion and Repeal) Bill 2026 was passed by the Senate on June 10, 2026. It was then approved by the National Assembly on June 11, 2026.
The law follows the sale of a 75% stake in Pakistan International Airlines to the Arif Habib Consortium. The consortium acquired the majority stake for Rs135 billion, or about $482 million, in a televised auction in Islamabad.
The winning bid beat the Lucky Consortium, whose final offer stood at Rs134 billion. Officials said the government will receive Rs 10.2 billion in cash immediately under the deal.
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The Arif Habib Consortium included Arif Habib Corporation Limited, Fatima Fertiliser Company Limited, City Schools (Private) Limited, and Lake City Holdings (Private) Limited.
The privatisation marks Pakistan’s first major large-scale sale of a state asset in about two decades. Officials expect it to save taxpayers about Rs35 billion annually in subsidies and operating costs.
Fauji Fertiliser Company later joined the Arif Habib-led consortium. The company’s board approved participation after the consortium placed the highest bid for PIA’s 75% shares.
AP reported that the PIA sale met a long-standing demand from the International Monetary Fund. The IMF has urged Pakistan to privatise the loss-making airline as part of broader economic reforms tied to its bailout programmes.
