President Zardari approves bill, completes legal requirement for PIA privatisation

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 privatisation of Pakistan International Airlines Company Limited (PIACL).

According to a statement issued by the presidency on X, the approval fulfils the legal prerequisites necessary for the completion of the privatisation process of PIACL.

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

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

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

The winning bid of Rs135 billion (approximately $482 million) marked the first major privatisation of a state-owned enterprise in nearly two decades and underscored Pakistan’s commitment to market-driven economic reforms supported by the International Monetary Fund (IMF).

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

The consortium assumed full operational control around April and committed to reinvesting approximately Rs125 billion from the bid proceeds into fleet modernisation, route expansion, debt management, and broader operational improvements.