Pakistan’s privatisation of Pakistan International Airlines (PIA) moved a step closer to completion after President Asif Ali Zardari approved the Pakistan International Airlines Corporation (Conversion and Repeal) Bill 2026, fulfilling a key legal requirement for transferring control of the national carrier to its new owners.
The legislation was passed by the Senate on June 10 and approved by the National Assembly a day later. With the president’s assent, the government has completed the legislative process required to finalize the privatisation transaction and implement the new ownership structure.
The approval follows the successful bidding process earlier this year in which the Arif Habib Consortium emerged as the winning bidder with an offer of Rs. 135 billion for a 75 percent stake in PIA. The consortium narrowly outbid the Lucky Consortium, whose final offer stood at Rs. 134 billion.
Government officials have described the transaction as Pakistan’s first major large scale privatisation in nearly two decades. Under the terms of the agreement, the government is expected to receive Rs. 10.2 billion in immediate cash proceeds while significantly reducing its financial exposure to the loss making airline.
Authorities estimate that transferring control of the airline to the private sector could save taxpayers around Rs. 35 billion annually by eliminating subsidies and operational support previously required to keep the carrier running.
The privatisation marks a major milestone in the government’s broader economic reform agenda, which has focused on reducing losses at state owned enterprises, attracting private investment, and improving operational efficiency across key sectors of the economy.
Following the acquisition, the Arif Habib Consortium also confirmed the inclusion of Fauji Fertilizer Company as a strategic partner in the transaction. Consortium representatives said the addition of Fauji Fertilizer would strengthen efforts to revive and expand the airline under private ownership.
Last nail in the coffin….