ISLAMABAD: Pakistan International Airlines (PIA) officially entered a new era on Monday as management control was transferred to PIA Equity Ltd, a special purpose vehicle established by the Arif Habib Consortium, completing the government's landmark privatisation process.
The transition ceremony was attended by Prime Minister Shehbaz Sharif, Deputy Prime Minister and Foreign Minister Ishaq Dar, and Chief of Defence Forces and Chief of the Army Staff Field Marshal Asim Munir. The handover marks the completion of the first financial close of PIA’s privatisation, which the Ministry of Privatisation described as Pakistan’s largest privatisation transaction.
In an official statement, PIA said the transfer represents a “bold new chapter of modernisation and global excellence” for the national carrier. The airline confirmed that a fresh equity injection of Rs125 billion has fully capitalised PIA, enabling it to modernise operations, enhance service quality, strengthen financial stability, and preserve its decades-old legacy.
The chairman of PIA Equity Ltd said earning the trust of the Pakistani people would remain the new management’s top priority. He pledged to improve customer experience, operational efficiency, and service standards while honouring the airline’s historic reputation.
According to the Ministry of Privatisation, the transaction carries a total investment commitment of Rs180 billion. This includes Rs125 billion in fresh capital for PIA’s transformation and Rs55 billion payable to the Government of Pakistan as part of the agreement.
Prime Minister Shehbaz Sharif hailed the successful transfer as another milestone in Pakistan’s economic reform agenda, saying the investment would help revive the national airline while boosting investor confidence in the country. Deputy Prime Minister Ishaq Dar also praised the transparent and competitive process, calling it a reflection of the government’s commitment to governance reforms and economic stability.
The privatisation follows the government’s successful sale of a 75% stake in PIA to the Arif Habib-led consortium after a competitive bidding process. The consortium had submitted the highest bid of Rs135 billion, defeating a rival group led by businessman Muhammad Ali Tabba.
The successful completion of the transaction ends years of financial uncertainty for PIA and is expected to pave the way for fleet modernisation, improved international competitiveness, and sustainable long-term growth for Pakistan’s national flag carrier.
