President Asif Ali Zardari has approved the Pakistan International Airlines Corporation (Conversion) (Repeal) Bill, 2026, completing what authorities described as the final legal step required for the privatisation of the national flag carrier, Pakistan International Airlines (PIA).
According to an official statement from the Presidency, the assent fulfils all necessary legal formalities and requirements for the completion of the privatisation process of Pakistan International Airlines Company Limited (PIACL). The move follows parliamentary approval of the bill, which was passed by the Senate on June 10 and subsequently approved by the National Assembly on June 11 before being sent to the president.
The legislation repeals the earlier Pakistan International Airlines Corporation (Conversion) Act, 2016, which had aimed to convert the airline into a public limited company as part of broader restructuring efforts.
The development marks a significant milestone in the government’s long-running efforts to offload the loss-making national carrier and improve its financial sustainability through private sector management.
Earlier, a consortium led by Arif Habib Corporation Limited secured the winning bid for 75 per cent of PIA’s shares during an auction held in December last year. The consortium’s bid was valued at Rs135 billion, marking one of the largest privatisation transactions in recent years.
The formal transaction documents were signed in January at a ceremony attended by Prime Minister Shehbaz Sharif, signalling the government’s commitment to the restructuring plan.
Under the proposed revival strategy, the Arif Habib-led consortium plans to undertake extensive operational reforms, including fleet expansion, financial restructuring, and improvements in customer service standards to restore competitiveness in the aviation sector.
The consortium has also expressed interest in acquiring the remaining 25 per cent government stake in the airline in the future, which would grant full managerial control and complete private ownership of PIA.
Officials say the latest legal approval removes the final hurdle in the privatisation process and paves the way for the implementation phase of the transaction.