President approves law clearing final hurdle for PIA privatisation

ISLAMABAD: President Asif Ali Zardari has approved the Pakistan International Airlines Corporation (Conversion) (Repeal) Bill, 2026, completing the legal process required for the privatisation of Pakistan International Airlines Company Limited.

The presidency said in a statement that the assent had fulfilled all legal requirements for completing the transaction involving the national carrier. The bill had first been passed by the Senate on June 10 and was then approved by the National Assembly on June 11 before being sent to the president.

The repealed law had originally been enacted in January 2016 to convert the state-run airline into a public limited company. With its removal now formalised, the privatisation process for PIACL has cleared its remaining legal step.

A consortium led by Arif Habib Corporation Limited had emerged as the successful bidder for a 75 per cent stake in PIA in December last year with an offer of Rs135 billion. Transaction documents were signed at a ceremony in January attended by Prime Minister Shehbaz Sharif. The consortium plans to turn around the loss-making airline through operational restructuring, fleet growth and better customer service, and also intends to acquire the government’s remaining 25pc stake to secure full control over decision-making.