ISLAMABAD — Pakistan International Airlines (PIA) will be formally handed over to its new private owners by the end of June 2026, marking the completion of a major privatization deal that was delayed for months due to global regulatory requirements.
Muhammad Ali, the Prime Minister’s Adviser on Privatisation, confirmed that all local and international approvals have been secured. The historic transaction includes a 15-year tax exemption on aircraft leases and equipment, which was specifically cleared by the International Monetary Fund (IMF) to facilitate the deal.
Muhammad Ali says codal formalities completed for Rs135bn transaction; GST exemption on aircraft and spare parts cleared with IMF approval
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— Profit (@Profitpk) June 22, 2026
Key Privatization Updates
- The Arif Habib-led consortium will assume 100 percent operational control of PIA this month.
- Fatima Fertiliser leads the new ownership structure with a dominant 34.1 percent stake.
- Fauji Fertiliser has joined the consortium as the second-largest shareholder at 33.9 percent.
- The private owners are already actively co-managing all current financial and operational decisions.
Massive Aviation and Energy Asset Offloading Planned
The final handover follows a successful Rs135 billion bid centered on injecting fresh investment directly into the airline. With the PIA deal reaching the finish line, the federal government is immediately shifting its focus toward upgrading other loss-making state assets and outsourcing major airport operations.
State Asset Privatization Timeline (FY 2026-27)
• Karachi & Lahore Airports: Financial advisers hired immediately to secure $1B+ investment.
• Power Sector (Discos): Faisalabad, Gujranwala, and Islamabad sales set for Q4 2026.
• Islamabad Airport: Privatization track launched with ADB as transaction adviser.
• Banking Sector: ZTBL and HBFC sell-offs scheduled for completion before June 2027.
While the special IMF-cleared tax exemptions for PIA have drawn criticism from parliamentary committees for creating an uneven playing field for competing local airlines, the government defended the move as a contractual necessity. Moving forward, the state plans to launch long-term concessions for the Hyderabad and Sukkur power companies to further reduce public sector financial drains.
