ISLAMABAD – President Asif Ali Zardari on Friday gave his assent to the Pakistan International Airlines Corporation (Conversion) (Repeal) Bill, 2026.
Following the presidential approval, all the necessary legal formalities and requirements for the completion of the privatization process of Pakistan International Airlines Company Limited (PIACL) have been fulfilled.
The bill was passed by the Senate on June 10, 2026, and subsequently received approval from the National Assembly on June 11, 2026, before being sent to the President for his assent.
The Arif Habib-led Consortium purchased PIA for Rs180 billion, with Rs55 billion going to the government and the remaining amount reinvested as fresh equity into the airline.
The agreement also stipulates that the new management cannot lay off any PIA employees for the first year of operation.
Taking full control will allow Arif Habib group to implement management changes and steer PIA’s turnaround without interference from government-appointed board members.
CEO of Arif Habib Ltd said the change of sponsors is expected in late April or early May. Speaking with local publication, he said the move will enable airline to operate fully as a private entity, giving us the freedom to implement reforms swiftly and effectively.
The government provided 90-day window for the consortium to acquire the remaining 25% stake, valued at roughly Rs45 billion, with a deadline at the end of April. Under the agreement signed in January, the consortium has up to 12 months to complete fund transfer, making the acquisition fully achievable.
In December last year, Pakistan International Airlines (PIA) took historic step toward privatization and the auction, broadcast live on national television, marked government’s second attempt to privatize PIA after a previous effort had failed.
