President Asif Ali Zardari on Friday approved the Pakistan International Airlines Corporation (Conversion) (Repeal) Bill, 2026, completing the final legal requirement for the privatization of Pakistan International Airlines Company Limited (PIACL). The presidential assent marks a major milestone in the government’s long-running efforts to transfer the national carrier into private ownership.
With the President’s approval, all necessary legal formalities linked to the privatization process have now been fulfilled. The legislation was first passed by the Senate of Pakistan on June 10, 2026, before receiving approval from the National Assembly of Pakistan on June 11. The bill was then forwarded to the President, who formally signed it into law.
Under the privatization agreement, an Arif Habib Limited-led consortium acquired PIA in a deal valued at Rs180 billion. According to the arrangement, Rs55 billion will go directly to the government, while the remaining amount will be injected into the airline as fresh equity to support its restructuring and future operations.
The agreement also includes protections for the existing workforce. The new management is barred from laying off any PIA employees during the first year after taking operational control. This condition was included to ensure a smoother transition and to protect jobs while the airline undergoes reforms under private ownership.
With full control of the airline, the Arif Habib-led consortium will be able to introduce management changes and execute its turnaround strategy without interference from government-appointed board members. The company’s leadership has previously stated that operating as a fully private entity will provide the flexibility needed to implement reforms more quickly and improve efficiency.
Officials have said the government granted the consortium a 90-day period to acquire the remaining 25 percent stake in the airline, valued at around Rs45 billion. Under the agreement signed earlier this year, the investors have up to 12 months to complete the transfer of funds, making the full acquisition process achievable within the agreed timeframe. PIA’s privatization journey gained momentum after the successful auction held in December last year, marking the government’s second attempt to privatize the national airline after an earlier effort failed.
