President Zardari approves bill and completes legal requirement for privatization of PIA

President Asif Ali Zardari on Friday gave his assent to the Pakistan International Airlines Corporation (Conversion) (Repeal) Bill, 2026, completing a key legal requirement for the privatization of Pakistan International Airlines Company Limited (PIACL).

According to a statement issued by the presidency on X day, the approval meets the legal requirements necessary to complete the privatization process of PIACL.

The bill was passed by the Senate on June 10 this year and subsequently approved by the National Assembly (AN) on June 11 before being sent to the president for approval.

The repeal of the Pakistan International Airlines Corporation (Conversion) Act, passed in 2016, is part of the government’s efforts to advance privatization of the national flag carrier.

With the president’s approval, the legislation has formally become law, paving the way for the next stages of the privatization process.

A consortium led by Arif Habib Corporation Limited secured a majority stake of 75 per cent in Pakistan International Airlines Corporation Ltd (PIACL) through a televised public auction on December 23, 2025.

The winning bid of 135 billion rupees (approximately $482 million) marked the first major privatization of a state-owned company in nearly two decades and underlined Pakistan’s commitment to market-driven economic reforms supported by the International Monetary Fund (IMF).

Under the agreement, the government was to retain the remaining 25% stake. However, the consortium later said it planned to also acquire the outstanding shareholding.

The consortium assumed full operational control around April and has committed to reinvest approximately Rs 125 billion of the tender proceeds into fleet modernization, route expansion, debt management and broader operational improvements.