The transaction marks a significant milestone in the government’s economic reform programme, the Privatisation Commission said.
Here’s a polished version in a concise news style:
Govt completes first closing of PIA privatisation deal
The government has completed the first closing of the Pakistan International Airlines (PIA) privatisation transaction, receiving Rs10 billion in initial sale proceeds.
The second closing of the deal remains scheduled to take place within the next 12 months.
If you want this in a more breaking news or headline + bullet format, I can rewrite it accordingly.
The Privatisation Commission (PC) of Pakistan on Monday completed the first closing of the divestment of Pakistan International Airlines Corporation Limited (PIACL) through privatisation, handing over management control of the airline to an investor consortium led by Arif Habib Corporation Limited after all conditions precedent under the Share Purchase and Subscription Agreement (SPSA) were met.
The successful completion of the first closing of the PIACL privatisation deal marks a key milestone in the government’s economic reform programme, said a press release issued by the Privatisation Commission.
It stated that the development reflects the government’s commitment to a transparent, competitive and investor-friendly privatisation process under the vision of Prime Minister Shehbaz Sharif, who has consistently emphasised a greater role for the private sector in driving sustainable economic growth, investment and employment.
According to the statement, the bidding process held on December 23, 2025 resulted in a total investment commitment of Rs180 billion by the consortium. Of this, Rs55 billion will be paid to the government for the acquisition of PIACL, while Rs125 billion will be invested into the airline to support its long-term restructuring and revival of the national carrier.
After the completion of all conditions precedent under the first closing, the consortium has finalized the transaction by paying Rs10 billion to the government as sale proceeds and injecting Rs80 billion into PIACL as fresh equity. This capital infusion is intended to strengthen the airline’s financial stability, support fleet expansion and modernisation, expand its route network, improve operational efficiency and customer service, and place the airline on a sustainable long-term growth path.
The second closing is scheduled within 12 months of the first, in line with the Share Purchase and Subscription Agreement (SPSA), under which the consortium has pledged an additional investment of Rs45 billion into PIACL. The consortium has also signalled its intent to acquire the remaining 25% stake in the airline through a call option under the agreement, involving a further Rs45 billion payment to the government.
The Privatisation Commission appreciated the guidance of Deputy Prime Minister Ishaq Dar, Finance Minister Muhammad Aurangzeb, and the Cabinet Committee on Privatisation, noting that the process moved forward under their oversight. It added that since the SPSA was signed on January 29, 2026, all involved stakeholders, including the Ministry of Defence, successfully completed a complex set of conditions precedent in a short timeframe.
These included regulatory approvals from domestic and international bodies, consents from lessors and commercial partners, aviation policy reforms, corporate approvals, restructuring of legacy tax liabilities, aircraft financing arrangements, governance adjustments, airport infrastructure arrangements, and transaction security commitments from the investor consortium.
The Commission said these requirements were fulfilled while ensuring uninterrupted airline operations, maintaining commercial relationships and aviation certifications, protecting employees’ interests, and ensuring continuity of passenger services throughout the transition period.
Adviser to the Prime Minister on Privatisation Muhammad Ali said the transaction reflects Pakistan’s capacity to execute complex strategic deals through a transparent, competitive and professionally managed process. He said it underscores the government’s commitment to economic reform, fiscal discipline, and increased private-sector participation, while also boosting investor confidence.
He further assured that the government remains committed to safeguarding the interests of employees, passengers, and consumers, ensuring a smooth transition and uninterrupted operations, with full compliance with aviation laws and regulatory frameworks.
The Privatisation Commission also acknowledged the support of the federal cabinet, its board, relevant ministries—especially the Ministry of Defence and Ministry of Finance—as well as regulatory authorities and the financial advisory consortium led by EY Consulting LLC Dubai for their role in facilitating the transaction.
Prime Minister Shehbaz Sharif, in a post on X, welcomed the completion of the first financial closing of the PIACL privatisation deal, calling it a moment of satisfaction for the government and the people of Pakistan and describing it as a landmark achievement in the country’s privatisation history.
