ISLAMABAD: Pakistan President Asif Ali Zardari has approved a bill transferring Pakistan International Airlines (PIA) assets, liabilities and management control to new owners, his office said on Friday, months after the privatization of the national carrier.
The airline, which had accumulated more than $2.8 billion in losses over the years, was privatized in Dec. 2025 after Arif Habib Group-led consortium agreed to acquire a 75 percent stake in the airline for Rs135 billion ($482 million), following a competitive bidding process that valued the carrier at Rs180 billion ($643 million).
However, officials said this month the privatization process had been delayed by pending legal and regulatory requirements as the transaction could not be completed until a series of conditions agreed between the government and the buyer were fulfilled.
In a post on X, the president’s office said the Pakistan International Airlines Corporation (Conversion) (Repeal) Bill, 2026 has been enacted into a law, following its approval by upper and lower house of parliament June 10 and 11, respectively.
“After the approval of the bill, the legal requirements necessary for the completion of the privatization process of Pakistan International Airlines Company Limited (PIACL) have been fulfilled,” Zardari’s office said.
This month, officials from the Privatization Commission and the Ministry of Defense said a number of Conditions Precedent (CPs) had remained outstanding.
These were legal, regulatory and administrative requirements that both the government and the buyer must complete before ownership and management can formally change hands.
“It is a positive development, good for PIA,” Arif Habib, who leads the consortium that bought the airline, told Arab News when asked about enactment of the bill fulfilling conditions for PIA’s privatization.
Habib did not give further details.
A senior Privatization Commission official this month said the consortium, led by Habib, had so far paid Rs5 billion ($18 million), while approximately Rs85 billion ($305 million) remains payable at the first closing.
“The government has not given administrative control to the consortium so it is hoped that the payment of Rs85 billion will be made once the government side completes the handover,” the official said, requesting anonymity.
Habib, chief executive of the group, did not respond to requests for comment at the time.
The consortium has already said it intends to acquire the remaining 25 percent stake in the airline, potentially paving the way for full private ownership.
