ISLAMABAD: President Asif Ali Zardari on Friday approved the Pakistan International Airlines Corporation (Conversion) (Repeal) Bill, 2026, completing the final legal process required for the privatisation of the country’s national airline.
In a statement shared on X, the President’s Office confirmed that the bill had received presidential assent, paving the way for the implementation of the PIA privatisation plan.
The legislation was passed by the Senate on June 10 and subsequently approved by the National Assembly on June 11, marking the conclusion of the parliamentary process.
The legal approval follows the landmark sale of a 75% stake in Pakistan International Airlines (PIA) to a consortium led by Arif Habib Corporation, which secured the winning bid of Rs135 billion in December 2025. The transaction represents Pakistan’s first major privatisation initiative in nearly 20 years and forms a key part of the country’s economic reform programme supported by the International Monetary Fund (IMF).
Earlier this year, the Privatisation Commission also approved the inclusion of Fauji Fertiliser Company (FFC) in the consortium, further strengthening the investor group.
Under the agreed structure, approximately Rs124.87 billion, or 92.5% of the sale proceeds, will be injected directly into PIA to support its restructuring and operational revival, while the remaining 7.5% (Rs10.12 billion) will be transferred to the federal government.
Officials say the arrangement is designed to revive the airline, which had been incurring annual losses of nearly Rs50 billion, while advancing broader reforms of state-owned enterprises under Pakistan’s IMF commitments.
The government will retain a 25% ownership stake in PIA, described as a strategic asset under the privatisation framework. The new investors will have the option to acquire this remaining share in the future or leave it under state ownership.
Separately, the Privatisation Commission Board has also recommended revising its fee structure to improve the institution’s financial sustainability and support ongoing governance reforms.
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