Islamabad, June 29, 2026: The Privatisation Commission on Monday announced the formal transfer of management control of Pakistan International Airlines Corporation Limited (PIACL) to the Arif Habib Corporation-led consortium, marking the completion of the first financial closing of the airline’s privatisation transaction.
According to the commission, management control was handed over after all conditions precedent under the Share Purchase and Subscription Agreement (SPSA), signed on January 29, 2026, were fulfilled.
The newly constituted PIACL board appointed Lt Gen (retd) Anwar Ali Haider, Managing Director of Fauji Foundation, as the first chairman of the privatised airline.
The Privatisation Commission said the transaction required completion of 40 conditions precedent covering regulatory approvals, commercial consents, taxation matters, corporate restructuring, governance changes and operational arrangements.
These included approvals from the Pakistan Civil Aviation Authority, Competition Commission of Pakistan and other domestic regulators, as well as merger-control clearances from relevant foreign jurisdictions, including Saudi Arabia and Kuwait.
PIACL also obtained 22 contractual consents from aircraft lessors, maintenance providers, fuel suppliers, airline partners, payment service providers and other operational counterparties to ensure continuity of operations following the change in ownership.
Corporate actions included shareholder approvals, amendments to the airline’s Articles of Association, an increase in authorised share capital and arrangements for the issuance of new shares.
The commission said employee protections were maintained through the continuation of the “Essential Services” notification, while airport infrastructure rental arrangements with the Pakistan Airports Authority were extended for three years.
Tax-related measures included structured repayment mechanisms for legacy liabilities and protections against coercive recovery actions.
The consortium’s total investment commitment stands at Rs180 billion, comprising Rs55 billion payable to the government for the share sale and Rs125 billion to be injected into PIACL for the airline’s transformation.
Following the first closing, the consortium paid Rs10 billion to the government and injected Rs80 billion into PIACL as fresh equity to support fleet expansion, route development, modernisation and service improvements.
A second financial closing is scheduled within 12 months, under which the consortium will invest an additional Rs45 billion into PIACL. The investors have also expressed their intention to acquire the remaining 25 per cent government stake through a call option for another Rs45 billion.
Adviser to the Prime Minister on Privatisation Muhammad Ali said the transaction demonstrated Pakistan’s ability to execute complex strategic transactions through a transparent and competitive process, while strengthening investor confidence.
A spokesperson for PIA Equity Ltd, the consortium’s special purpose vehicle, said the deal established full private ownership of the airline and represented a strategic alliance of industrial, financial and institutional partners.
Under the new shareholding structure, Fatima Fertilizer Company Limited holds 34.1 per cent, Fauji Fertilizer Company Limited 33.9 per cent, while Lake City, City Schools and AKD Group each hold 16 per cent.
Speaking after assuming office, Chairman Lt Gen (retd) Anwar Ali Haider said the airline’s responsibility to the people of Pakistan remained unchanged despite the new corporate structure.
“Trust is earned — mile by mile, smile by smile, year by year. We know this, and we accept the challenge wholeheartedly,” he said.
He added that the airline would preserve its heritage while striving to build a modern, premium aviation experience for passengers.
