Islamabad: The Government of Pakistan has officially transferred management control of Pakistan International Airlines Corporation Limited (PIACL) to an investor consortium led by Arif Habib Corporation Limited. This follows the successful first financial closing of the airline’s privatisation, marking a pivotal step in the government’s economic reform agenda.
According to Privatisation Commission, the transfer of control was completed after all conditions under the Share Purchase and Subscription Agreement were met. This move underscores the government’s commitment to a transparent and investor-friendly privatisation strategy. The initiative is part of a broader effort to enhance the role of the private sector in driving economic growth, investment, and employment, with backing from Prime Minister Mian Muhammad Shehbaz Sharif.
The privatisation process involved a complex set of requirements, including regulatory approvals, aviation policy reforms, and financial restructuring. Despite these challenges, the conditions were satisfied within a tight timeframe, ensuring continuity of operations and protection of employee interests.
The investor consortium committed a total investment of Rs. 180 billion, with Rs. 55 billion allocated for the government’s sale of PIACL and Rs. 125 billion intended to support the airline’s transformation. As part of the first closing, Rs. 10 billion was paid to the government, and Rs. 80 billion was injected into PIACL to improve its financial standing and operational capacity.
The second financial closing is anticipated within the next year, with an additional Rs. 45 billion expected to be invested. The consortium also expressed interest in acquiring the remaining 25% of PIACL shares, further demonstrating confidence in the airline’s potential.
Advisor to the Prime Minister on Privatisation, Mr. Muhammad Ali, emphasized the transaction’s significance in reaffirming Pakistan’s ability to handle strategic privatisations effectively. The government assures that aviation laws and regulatory oversight will continue, ensuring stability for employees, passengers, and stakeholders during the transition.