ISLAMABAD: President Asif Ali Zardari on Friday approved the Pakistan International Airlines Corporation (Conversion) (Repeal) Bill, 2026, completing the remaining legal formalities required for the privatisation of the national flag carrier.
According to a statement posted on X by the President’s Office, the bill has now been formally assented to, paving the way for the implementation of the privatisation framework.
The legislation had been passed by the Senate on June 10, 2026, and subsequently approved by the National Assembly on June 11.
With presidential approval, the legal process required to proceed with the privatisation of Pakistan International Airlines (PIA) has been finalised. The development comes months after the carrier was acquired by a consortium led by Arif Habib Corporation in a transaction finalised in December last year.
The consortium emerged as the successful bidder for a 75 per cent stake in the airline, offering Rs135 billion in a deal described by officials as a milestone in Pakistan’s privatisation drive and part of broader economic reforms under an International Monetary Fund (IMF) programme.
In March 2026, the Privatisation Commission approved the inclusion of Fauji Fertiliser Company (FFC) in the consortium. Officials said the transaction structure ensured that a majority of the proceeds would be reinvested into the airline, with 92.5 per cent directed towards PIA and the remaining 7.5pc — about Rs10.12 billion — going to the federal government.
The government retains a 25pc stake in the airline, which may be offered to the consortium at a later stage or kept under state ownership depending on the terms of the privatisation framework.
Officials also noted that prior to the sale, the airline was incurring annual losses of around Rs50 billion, underscoring the urgency of restructuring efforts under the IMF-supported reform agenda.
