PIA set to be fully privatised

Pakistan has taken a major step towards fully privatising its national carrier, Pakistan International Airlines (PIA), after a private consortium signalled its intention to acquire the government’s remaining stake.

In a statement, the Ministry of Privatisation of Pakistan said a group led by Arif Habib Corporation Limited has formally notified authorities of its plan to purchase the final 25 percent shareholding in the airline. If completed, the move would transfer full ownership of the carrier to the private sector.

Officials said management control of PIA is expected to shift by 25 May 2026, subject to the fulfilment of Conditions Precedent set out in the Share Purchase and Subscription Agreement (SPSA) signed on January 29, 2026.

The notice of intent to acquire the remaining 25 percent equity stake (call option) has been accompanied by the requisite standby letter of credit and will be exercised in accordance with the terms of the SPSA.

Total private-sector investment in the transaction is expected to amount to approximately PKR 180 billion, comprising: A minimum of Rs. 55 billion payable to the Government of Pakistan as divestment proceeds; and Rs. 125 billion to be injected as fresh equity into PIA to support the airline’s recapitalisation.

Authorities say the fresh capital will be used to modernise the airline’s fleet, expand routes, and improve customer service and and operational systems.

The consortium comprises Arif Habib Corporation Limited (AHCL), Fatima Fertilizer Company Limited, Lake City Holdings (Pvt) Limited, The City School (Pvt) Limited, AKD Group Holdings (Pvt) Limited, and Fauji Fertilizer Company (FFC) Limited.

The Privatisation Commission of Pakistan, the consortium, the Government of Pakistan, and PIA are working jointly to fulfil the conditions precedent ahead of the First Closing.