President Zardari approves bill, completes legal requirements for PIA privatization

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 Day X, the approval fulfills the legal conditions necessary for the completion of the PIACL privatization process.

The bill was passed by the Senate on June 10 this year, then approved by the National Assembly (NA) 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 the privatization of the national airline.

With the president’s approval, the legislation officially became law, paving the way for the next steps in the privatization process.

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

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

According to this agreement, the government was to keep the remaining 25%. However, the consortium later announced that it was also considering acquiring the remaining shares.

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