According to a statement issued on Monday, the handover marks a major milestone in Pakistan s aviation sector and is intended to modernise the airline, improve service standards, and restore its international competitiveness.

Prime Minister Shehbaz Sharif described the transfer of management control as the beginning of a new chapter for PIA, saying the transaction represents a key step in the country s economic reform programme and is expected to strengthen investor confidence.

The transaction is valued at approximately Rs180 billion, including Rs55 billion in proceeds to the Government of Pakistan and Rs125 billion in fresh equity investment into PIA. The new investment will be used to restructure operations, renew the airline s fleet, expand routes, and enhance passenger services.

The consortium behind PIA Equity Ltd comprises Arif Habib Group, Fatima Fertilizer Company Ltd, Fauji Fertilizer Company Ltd, Lake City Holdings (Pvt) Ltd, The City School (Pvt) Ltd, and AKD Group Holdings.

The government said all local and international regulatory approvals, including those from global lenders and tax authorities, have been completed, allowing management control to be transferred to the new owners.

Speaking at the handover ceremony, the chairman of the new ownership said rebuilding public trust would be the airline s top priority.  Trust is earned mile by mile, smile by smile, year by year. We know this, and we accept the challenge wholeheartedly. 

He added that while the ownership structure has changed, PIA remains committed to serving the people of Pakistan and preserving its heritage while building a modern, premium airline.

The new management said it is fully capitalised and prepared to improve service quality and position PIA to compete with leading international airlines.