President Zardari Approves PIA’s Privatisation Bill

President Asif Ali Zardari has given his approval to the Pakistan International Airlines Corporation (Conversion) (Repeal) Bill 2026, finalizing the legal procedures necessary for the privatisation of the national airline.

His office announced on X: “President Asif Ali Zardari has approved the Pakistan International Airlines Corporation (Conversion) (Repeal) Bill, 2026.”

With this presidential approval, all legal steps required for moving forward with PIA’s privatisation have now been completed.

The bill received approval from the Senate on June 10, 2026, and from the National Assembly on June 11, 2026.

Parliament passed this essential legislation several months after the national airline’s privatisation, which saw it acquired by a consortium led by Arif Habib Corporation in December of last year.

The consortium had won the bidding process for a 75% stake in the airline, offering Rs135 billion, a deal that authorities described as a landmark achievement.

This sale represented Pakistan’s first major privatisation in almost two decades, taking place amid ongoing pressure to reform loss-making state-owned enterprises as part of a $7 billion International Monetary Fund (IMF) programme.

In March 2026, the Privatisation Commission had given approval for Fauji Fertiliser Company (FFC) to join the consortium.

The deal, designed to channel Rs124.87 billion directly into PIA rather than into the national treasury, plays a key role in Pakistan’s IMF-supported reform plans. Prior to the sale, the airline had been losing approximately Rs50 billion annually.

Additionally, the Privatisation Commission’s board recommended updating the commission’s fee structure to enhance its financial stability and support broader institutional reforms.

Government officials stated that out of the total amount paid for the 75% stake, 92.5% of the proceeds will go directly to PIA, while the remaining 7.5% — equivalent to Rs10.12 billion — will be transferred to the federal government.

The government’s retained 25% stake has been described as a valuable asset. Under the privatisation framework, successful bidders will have the option to acquire this remaining stake at a later date or leave it with the state.