ISLAMABAD: President Asif Ali Zardari has approved the Pakistan International Airlines Corporation (Conversion and Repeal) Bill 2026, completing the legal process required for the privatisation of Pakistan International Airlines (PIA), according to media reports on Friday.
The president’s assent marks a significant milestone in the government’s efforts to restructure and privatise the national flag carrier. The bill was passed by the Senate on June 10, 2026, and subsequently approved by the National Assembly on June 11, 2026.
Privatisation Process Reaches Completion
The approval of the legislation fulfils the remaining legal requirements for the completion of PIA’s privatisation. Earlier this year, the Arif Habib Consortium successfully acquired a 75 percent stake in the airline with a winning bid of Rs135 billion.
The consortium narrowly outbid the Lucky Consortium, whose final offer reached Rs134 billion. As a result, the acquisition became one of the most closely contested privatisation deals in recent years.
Officials said the government will immediately receive Rs10.2 billion in cash under the terms of the agreement. Moreover, authorities expect the privatisation to reduce the financial burden on the national exchequer and improve the airline’s operational performance.
Fauji Fertilizer Joins Consortium
Following the acquisition, the Arif Habib Consortium confirmed the inclusion of Fauji Fertilizer Company as a strategic partner in the deal. Representatives of the consortium welcomed the development and expressed confidence that the partnership would contribute to the airline’s revival and long-term growth.
Furthermore, the privatisation is being described as Pakistan’s first major large-scale privatisation initiative in nearly two decades. Government officials estimate the move could save taxpayers around Rs35 billion annually through reduced subsidies and operational expenses while supporting efforts to modernise the national carrier.
