Prime Minister Shehbaz Sharif has praised the successful completion of the initial financial closing in the privatisation of Pakistan International Airlines (PIA), calling it a historic milestone that sets the stage for the airline’s revival and boosts investor confidence in Pakistan’s economy.
He highlighted that the transfer of management control to the investor consortium signals the start of a new era for the national carrier. The Prime Minister also acknowledged the contributions of Deputy Prime Minister Ishaq Dar, Field Marshal Syed Asim Munir and his team, Adviser on Privatisation Muhammad Ali, Finance Minister Muhammad Aurangzeb, the Privatisation Commission, and all others involved in the process.
In a significant development, the federal government officially handed over operational control of Pakistan International Airlines Corp Ltd (PIACL) to the consortium led by Arif Habib Corporation Limited following the first financial closing. This transaction fulfilled all conditions of the Share Purchase Agreement signed on 29 January 2026, achieved within an exceptionally short period while maintaining uninterrupted airline operations and passenger services.
As part of the deal, the consortium paid Rs10 billion (approximately $36 million) directly to the government and injected Rs80 billion ($288 million) in fresh capital into PIA. These new funds are earmarked to stabilise the airline’s finances, upgrade its aging fleet, and enhance operational efficiency.
The consortium plans to invest an additional Rs45 billion by next year ahead of the second financial closing and has expressed interest in acquiring the government’s remaining 25 percent stake for a further Rs45 billion.
Prime Minister Shehbaz Sharif emphasized that this first financial closing sends a powerful message to both domestic and international investors that Pakistan is open for business and committed to economic reforms and growth. He reaffirmed the government’s dedication to safeguarding the interests of employees, passengers, and consumers throughout the transition.
Adviser on Privatisation Muhammad Ali described the privatisation process as a testament to Pakistan’s capability to execute complex transactions transparently, fairly, competitively, and professionally. The consortium, initially acquiring a 75 percent stake for Rs135 billion in December 2025, includes Fauji Fertiliser Company (FFC) and the AKD Group alongside Arif Habib Corporation.
The Privatisation Commission credited the federal cabinet, regulatory bodies, and financial advisers Ernst & Young (EY) Consulting Dubai for the swift and efficient execution of the deal. This move is viewed as a crucial element of the government’s broader economic reform agenda focused on divesting loss-making state-owned enterprises.
