The Privatisation Fee (PC) of Pakistan on Monday achieved the primary closing of the divestment of Pakistan Worldwide Airways Company Restricted (PIACL) by means of privatisation, transferring administration management of the airline to the investor consortium led by Arif Habib Company Restricted, following satisfaction of all situations precedent underneath the Share Buy and Subscription Settlement (SPSA).
The profitable completion of the primary closing of the PIACL privatisation transaction marks a major milestone within the authorities’s financial reform programme, stated a press launch issued by the Fee.
“It displays the federal government’s dedication to implement a clear, aggressive and investor-friendly privatisation agenda underneath the imaginative and prescient of Prime Minister Shehbaz Sharif, who has persistently championed a better position for the non-public sector as a driver of sustainable financial progress, funding and employment,” the assertion added.
The bidding course of, held on December 23, 2025, led to a complete funding dedication by the consortium of Rs180 billion, out of which Rs55bn will probably be paid to the federal government for the sale of PIACL and Rs125bn will probably be injected into PIACL to help the long-term transformation of PIACL and revive the nationwide service to its previous glory, the press launch said.
Accordingly, following achievement of the situations precedent, underneath the primary closing, the Consortium right this moment has accomplished Rs10 billion paid to the federal government as Sale proceeds and Rs80bn injected into PIACL as recent fairness to strengthen the airline’s monetary place, help fleet growth and modernisation, increase its route community, improve operational efficiency and customer support, and place the airline for long-term progress.
The second closing is scheduled to happen inside 12 months of the primary closing, in accordance with the phrases of the SPSA, whereby the consortium has dedicated to speculate an extra Rs45 billion into PIACL.
“The consortium which has additionally served its intent to purchase the remaining 25% of the PIACL shares as a Name choice underneath the SPSA for a further fee of Rs45 billion to the Authorities of Pakistan,” it added.
The Privatisation Fee extremely recommended the help and steering of Deputy Prime Minister Ishaq Dar, finance minister and the Cupboard Committee on Privatisation, the assertion added.
Since execution of the SPSA on twenty ninth January 2026, the Privatisation Fee and different authorities stakeholders, together with the Ministry of Defence, have accomplished difficult situation precedents underneath the SPSA.
These included home and abroad regulatory approvals, lessors and industrial consents, aviation coverage reforms, company approvals, restructuring of taxation relating legacy liabilities, plane financing preparations, governance adjustments, tax-related issues, airport infrastructure preparations, and the availability of transaction safety by the investor consortium.
The Circumstances Precedent had been accomplished inside an exceptionally compressed timeframe whereas sustaining uninterrupted airline operations, preserving vital industrial relationships and aviation certifications, defending workers’ pursuits, and making certain continuity of providers for passengers all through the transition.
Talking on the event, Advisor to the Prime Minister on Privatisation, Muhammad Ali, stated that this transaction demonstrates Pakistan”s capacity to execute complicated strategic transactions by means of a clear, truthful, aggressive and professionally managed course of.
It reinforces the govt.’s dedication to financial reform, fiscal duty and better private-sector participation whereas strengthening confidence amongst home and worldwide traders.
The federal government stays dedicated to defending the pursuits of workers, passengers and shoppers whereas making certain a easy transition and uninterrupted airline operations.
All relevant aviation legal guidelines and regulatory oversight will proceed to use, he added.
The Privatisation Fee acknowledges the help of the federal cupboard and the contributions of the Privatisation Fee Board, taking part ministries, significantly the Ministry of Defence, the Ministry of Finance and different authorities establishments, native regulatory authorities and the monetary advisory consortium for the transaction led by EY Consulting LLC Dubai for his or her contribution and efforts resulting in the profitable first closing.
