The federal government has officially transferred management control of Pakistan International Airlines (PIA) to a private consortium led by Arif Habib Corporation, marking the completion of the first financial closing under the airline’s Rs135 billion privatisation agreement.

According to the Privatisation Commission, the transfer became effective after the consortium fulfilled all conditions outlined in the Share Purchase and Subscription Agreement signed earlier this year, enabling the investor group to assume operational control of the national carrier.

As part of the first phase of the transaction, the consortium paid Rs10 billion to the government and injected Rs80 billion into Pakistan International Airlines Corporation Limited (PIACL) as fresh equity to support the airline’s restructuring and future operations.

Under the agreement, the investor group has also committed to inject an additional Rs45 billion within the next 12 months under the second financial closing. The consortium has further expressed its intention to exercise an option to acquire the government's remaining 25% stake for another Rs45 billion, which would raise the total value of the privatisation transaction to Rs180 billion upon completion.

Prime Minister Shehbaz Sharif welcomed the transfer of management, describing it as a significant milestone in Pakistan's economic reform programme. He said the transaction would help modernize the national airline, attract fresh investment, and strengthen investor confidence in Pakistan's privatisation agenda.

The Privatisation Commission clarified that while management control has now shifted to the private consortium, the government continues to retain a 25% ownership stake until the remaining phase of the transaction is completed. Officials confirmed that the government will continue to receive returns in proportion to its remaining shareholding during this period.

The privatisation process concluded after several months of regulatory approvals, financing arrangements, aircraft lessor consents, and tax restructuring. The Arif Habib-led consortium emerged as the successful bidder during the competitive auction process held in December.

Adviser to the Prime Minister on Privatisation Muhammad Ali stated that the successful completion of the transaction demonstrates Pakistan's ability to execute large-scale strategic privatisations through a transparent and competitive process while reinforcing the government's commitment to fiscal reforms and greater private-sector participation.

The government also confirmed that all aviation regulations and regulatory oversight will remain fully applicable following the transfer, with measures in place to safeguard the interests of employees, passengers, and consumers throughout the transition.

With management now under private control, the consortium has pledged to restore PIA's operational performance, improve service quality, strengthen financial sustainability, and rebuild the airline's reputation in domestic and international markets.