Islamabad: The Government of Pakistan has successfully transferred management control of Pakistan International Airlines Corporation Limited (PIACL) to an investor consortium led by Arif Habib Corporation Limited. This transfer follows the completion of the First Financial Closing of the PIACL privatisation transaction, fulfilling all conditions under the Share Purchase and Subscription Agreement (SPSA).

According to Press Information Department, the completion of this transaction represents a crucial step in the government’s economic reform agenda, driven by Prime Minister Mian Muhammad Shehbaz Sharif. The transition underscores the administration’s commitment to a privatisation strategy that aims to involve the private sector in fostering economic growth and investment.

The Privatisation Commission of Pakistan expressed appreciation for the assistance provided by Deputy Prime Minister Mohammad Ishaq Dar and the Cabinet Committee on Privatisation. Since the execution of the SPSA in January, the commission and other government stakeholders, including the Ministry of Defence, navigated a series of complex conditions to successfully close the transaction. These included securing regulatory approvals, aviation policy reforms, and managing taxation and infrastructure arrangements.

In a bidding process held in December 2025, the consortium committed to a total investment of Rs. 180 billion. As part of the First Closing, Rs. 10 billion was paid to the government, and Rs. 80 billion was injected into PIACL to bolster its financial status, expand its fleet, and enhance its operational capabilities.

The consortium plans a Second Closing within a year, with an additional Rs. 45 billion investment slated for PIACL. There is also a potential acquisition of the remaining 25% of PIACL shares through a call option.

Advisor to the Prime Minister on Privatisation, Mr. Muhammad Ali, highlighted the transaction as evidence of Pakistan’s capability to execute strategic deals transparently and professionally, reinforcing confidence among investors.

The Government assures that all regulatory standards will be maintained to protect the interests of employees and passengers during the transition. The Privatisation Commission acknowledged the support from various government bodies and advisors in achieving this milestone in Pakistan’s privatisation efforts.