President Asif Ali Zardari has officially approved the legislation required to complete the legal process for the privatisation of Pakistan International Airlines (PIA). With this presidential assent, the government has fulfilled all legal requirements needed to move forward with the long awaited reform of the national carrier.
According to an official statement, President Zardari signed the Pakistan International Airlines Corporation (Conversion) (Repeal) Bill 2026, clearing the final legal hurdle in the privatisation process. The development marks a major milestone in Pakistan’s efforts to restructure loss making state owned enterprises.
The legislation was first approved by the Senate on June 10, 2026, followed by its passage in the National Assembly on June 11, 2026. The presidential approval now allows authorities to formally implement the privatisation framework.
The privatisation of PIA gained momentum after a consortium led by Arif Habib Corporation emerged as the successful bidder for a 75 percent stake in the national airline. The consortium offered Rs135 billion, making it Pakistan’s first major privatisation deal in nearly two decades.
Officials have stated that approximately 92.5 percent of the proceeds from the transaction will be invested directly into PIA to improve its operations and financial position. The remaining 7.5 percent, equivalent to Rs10.12 billion, will be transferred to the federal government.
The move is also closely linked to Pakistan’s broader economic reform commitments under the International Monetary Fund programme. Before the sale, PIA had reportedly been suffering annual losses of around Rs50 billion, making reforms increasingly necessary.
Government officials believe the privatisation will help modernise the airline, improve efficiency, and reduce the financial burden on the national exchequer. The state will retain a 25 percent stake, which may either remain with the government or be offered to investors in the future under the agreed framework.
The completion of the legal process represents a significant step in Pakistan’s ongoing efforts to strengthen its economy through institutional reforms and strategic investments.
