Pakistan is set to hand over Pakistan International Airlines to its new owners by the end of June after completing the remaining legal and procedural requirements, Privatization Adviser Muhammad Ali said.
Ali said there are no major hurdles left in completing the transfer, although several matters had to be resolved following the airline’s sale in December 2025. A consortium led by Arif Habib Corporation acquired a 75 percent stake in PIA for Rs. 135 billion through a competitive bidding process, with Fauji Fertilizer Company later joining the investor group.
The transaction includes Rs. 10 billion for government equity and Rs. 125 billion in committed investment aimed at reducing debt and modernizing the airline’s fleet.
Ali said the government had to secure approvals for the transfer of global contracts, aircraft-backed loans, and lease agreements to the new entity. He added that liabilities were moved to the PIA Holding Company and outstanding tax-related matters with the Federal Board of Revenue had also been resolved.
The adviser said amendments to the PIA Act of 1956 had already been approved by Parliament after initially being introduced through an ordinance. He said only the provision allowing the airline to retain its existing name remains in force.
During the transition period, management decisions are being made by PIA in consultation with the buyers, he said.
Ali also said the government had secured approval from the International Monetary Fund to exempt aircraft, spare parts, and related items from General Sales Tax under the deal structure. Similar concessions for other airlines, he said, would require fresh approval from the lender.
Separately, he said the Privatization Commission Board had reviewed a proposed agreement with the Asian Development Bank for outsourcing operations at Islamabad International Airport under a long-term concession model. Preparatory work has also been completed for similar arrangements at airports in Karachi and Lahore, with each project expected to attract around $500 million in investment.
On the energy front, Ali said proposals for the privatization of companies including OGDCL, SNGPL, and SSGCL are under consideration by the Cabinet Committee on State-Owned Enterprises. He expressed hope that transactions involving five power distribution companies, HBFCL, ZTBL, and Islamabad airport would be completed during the next fiscal year.
