The privatisation of Pakistan International Airlines (PIA) has moved closer to completion after President Asif Ali Zardari approved the Pakistan International Airlines Corporation (Conversion and Repeal) Bill 2026, fulfilling the final legal requirement for transferring ownership to the private sector.

The bill was passed by the Senate on June 10 and cleared by the National Assembly the following day. With presidential assent now granted, the government has completed the legal framework needed to finalise the transaction and hand over control of the national carrier.

The development follows the earlier bidding process in which the Arif Habib Consortium emerged as the highest bidder, offering Rs135 billion for a 75 percent stake in PIA. It narrowly surpassed the Lucky Consortium, which submitted a final bid of Rs134 billion.

Officials have described the transaction as one of Pakistan’s largest privatisation deals in nearly two decades. Under the agreement, the government is expected to receive around Rs10.2 billion in immediate proceeds, while significantly reducing its financial burden linked to the loss-making airline.

Authorities estimate that privatisation could save the national exchequer approximately Rs35 billion annually by removing the need for operational subsidies and financial support.

The deal is part of broader economic reforms aimed at reducing the losses of state-owned enterprises, attracting private investment, and improving efficiency in key sectors.

After the acquisition, the Arif Habib Consortium has also confirmed the inclusion of Fauji Fertilizer Company as a strategic partner to support the airline’s restructuring and future expansion under private management.