According to the Privatisation Commission, the first financial closing marks a major milestone in the government s economic reform programme and reflects its commitment to a transparent, competitive and investor-friendly privatisation process.
The consortium had emerged as the successful bidder during the auction held on December 23, 2025, committing a total investment of Rs180 billion. Of this amount, Rs55 billion will be paid to the government for the acquisition of PIACL, while Rs125 billion will be injected into the airline to support its long-term revival and expansion.
Under the first phase, the consortium has paid Rs10 billion to the government as sale proceeds and invested Rs80 billion as fresh equity into PIACL. The funds will be used to strengthen the airline s financial position, modernise and expand its fleet, improve customer services, expand its route network and enhance operational efficiency.
The second financial closing is expected within the next 12 months, during which the consortium will invest an additional Rs45 billion in PIACL. It has also expressed its intention to acquire the remaining 25% shares of the airline through a call option for an additional Rs45 billion.
The Privatisation Commission said the transaction required the completion of several complex conditions, including domestic and international regulatory approvals, aircraft financing arrangements, aviation policy reforms, taxation restructuring, corporate approvals, governance changes and airport infrastructure arrangements, while ensuring uninterrupted airline operations.
Adviser to the Prime Minister on Privatisation Muhammad Ali said the successful transaction demonstrates Pakistan s ability to complete complex strategic investments through a transparent and competitive process, strengthening investor confidence and supporting the government s economic reform agenda.
Prime Minister Shehbaz Sharif welcomed the successful first financial closing of PIACL, calling it a historic milestone in Pakistan s privatisation history. He congratulated the nation and praised Deputy Prime Minister Ishaq Dar, Defence Minister Khawaja Asif, Finance Minister Muhammad Aurangzeb, Adviser on Privatisation Muhammad Ali, the Cabinet Committee on Privatisation, the Privatisation Commission and other stakeholders for their contributions.
The prime minister also acknowledged the support of Field Marshal Syed Asim Munir and his team, saying the successful completion of the transaction reflected effective teamwork in advancing the country s economic reforms.
