The Privatization Commission has successfully completed the first financial close of Pakistan International Airlines’ (PIA) privatization, marking the largest privatization transaction in the country’s history.
The Commission said the milestone reflects Pakistan’s commitment to executing complex transactions through a transparent, fair, and competitive process.
The transaction brings total investment commitments of Rs180 billion, including Rs125 billion in fresh capital to modernise and transform PIA, while Rs55 billion will be paid to the Government of Pakistan through the sale of its stake in the national carrier.
Adviser to the Finance Minister, Khurram Shehzad, described the successful completion of the financial close as a landmark achievement in Pakistan’s reform agenda.
He said the deal sends a strong signal to global investors about the government’s commitment to private sector-led growth, structural reforms, and transparent privatization.
The transaction follows the government’s approval of the successful bid for PIA, concluding one of Pakistan’s most closely watched privatization processes. It is also regarded as the country’s first major privatization in more than two decades.
“Beyond the transaction itself, it lays the foundation for a stronger national carrier and a more competitive aviation sector,” Shehzad said, adding that the successful completion reinforces investor confidence in Pakistan’s economic transformation.
Under the new ownership structure, the consortium has nominated a seven-member board comprising retired Gen Anwar Ali Haider, Jahangir Peracha (Fauji Foundation), Gohar Ejaz (Lake City Holdings Ltd), Arif Habib (Arif Habib Corporation), Fazal Sheikh (Fatima Group), Aqeel Karim Dhedhi (AKD Group), and Farzana Firoze (The City School).
The newly constituted board elected retired Gen Anwar Ali Haider as its chairman during its first meeting.
The government expects the privatization to revive the loss-making airline through fresh capital, stronger corporate governance, and private sector management practices. The investment will be used to modernise PIA’s ageing fleet, improve operational efficiency, enhance passenger services, and strengthen its competitiveness in international aviation markets.
The divestment is a key component of Pakistan’s broader economic reform programme aimed at reducing the fiscal burden of state-owned enterprises, attracting local and foreign investment, and expanding private sector participation in the economy.
For years, PIA remained a financial burden on the national exchequer due to recurring losses, mounting liabilities, and operational challenges. Officials believe the successful completion of the transaction marks a breakthrough in efforts to reform state-owned enterprises and create a more competitive, investment-friendly economy.
The new investment and management are expected to help PIA expand its route network, improve customer experience, and restore its position as a commercially viable airline in regional and international markets.
