By Staff Reporter
ISLAMABAD: President Asif Ali Zardari on Friday approved the Pakistan International Airlines Corporation (Conversion) (Repeal) Bill, 2026, removing the last legal obstacle to the transfer of the national carrier’s assets, liabilities and management control to a private consortium.
The legislation, which repeals the 2016 law that converted PIA into a public limited company, was passed by the Senate on June 10 and the National Assembly on June 11. The presidency said the assent means “all the necessary legal formalities and requirements for the completion of the privatisation process of Pakistan International Airlines Company Limited (PIACL) have been fulfilled”.
The development follows months of delays in the privatisation. In December 2025 a consortium led by Arif Habib Group won a competitive auction for a 75 percent stake, bidding Rs135bn ($482m) against a valuation of Rs180bn ($643m). The airline has accumulated losses of more than $2.8bn over the years.
Officials had warned earlier this month that several conditions precedent — legal, regulatory and administrative steps required of both the government and the buyer — remained outstanding and were blocking completion of the transaction. The consortium has already paid Rs5bn ($18m). Approximately Rs85bn ($305m) is due at first closing, once the government hands over administrative control. A senior Privatisation Commission official said the balance would be paid once that handover occurs.
Arif Habib, who heads the winning consortium, described the president’s approval as “a positive development, good for PIA”. The buyer has signalled its intention to acquire the remaining 25 percent government stake, which would give it full ownership. The consortium plans to restructure operations, expand the fleet and improve customer service. Habib has said the privatisation will lead to higher employment as the new owners grow the business.
The adviser to the prime minister on privatisation had previously stated that the buyer must retain all existing employees for 12 months after the transaction closes, with contracts unchanged. Transaction documents were signed in January at a ceremony attended by Prime Minister Shehbaz Sharif. Fauji Fertiliser, which had initially taken part in the bidding process but later withdrew, subsequently joined the Arif Habib-led consortium. The approval of the repeal bill brings to a close the formal legal process that began with the December 2025 auction and allows the long-delayed handover of Pakistan’s flagship airline to private hands.
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