President Zardari okays bill, completing ‘legal requirements’ for PIA privatisation

• Senate passed bill on 10 June 2026, NA approved on 11 June.
• PIA privatisation linked to long-pending reform agenda process.
• Consortium led by Arif Habib Corp acquired 75% stake in PIA.
  

ISLAMABAD: President Asif Ali Zardari on Friday gave assent to the Pakistan International Airlines Corporation (Conversion) (Repeal) Bill 2026, completing the legal requirements for the privatisation of the national carrier.

“President Asif Ali Zardari has approved the Pakistan International Airlines Corporation (Conversion) (Repeal) Bill, 2026,” his office said on X.

With the presidential assent, all legal formalities required to proceed with the privatisation of Pakistan International Airlines have been completed.

This bill was approved by the Senate on 10 June 2026 and by the National Assembly on 11 June 2026.

The parliament passed the required legislation months after the privatisation of the national carrier which was acquired by a consortium led by Arif Habib Corporation in December last year.

The consortium had emerged as the top bidder for a 75% stake in the national carrier, offering Rs135 billion in what authorities hailed as a landmark moment.

The auction marked Pakistan’s first major privatisation in nearly two decades and comes amid pressure to reform loss-making state firms under a $7 billion International Monetary Fund (IMF) programme.

In March 2026, the Privatisation Commission had approved the participation of Fauji Fertiliser Company (FFC) in the consortium.

The transaction, structured to inject Rs124.87bn directly into PIA rather than the national treasury, is central to Pakistan’s IMF-backed reform agenda. The airline had been haemorrhaging roughly Rs50bn annually before the sale.

Apart from this, the Privatisation Commission’s board also recommended revising the commission’s fee structure to strengthen its financial sustainability and support institutional reforms.

According to government officials, the amount paid for the 75% stake, 92.5% of the proceeds will be invested directly into PIA, while the remaining 7.5% — amounting to Rs10.12 billion — will be transferred to the federal government.

The government-retained 25% stake has been termed a valuable asset, and successful bidders will have the option to acquire it at a later stage or allow it to remain with the state, according to the privatisation framework.