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Zardari Signs Law Clearing Final Legal Hurdle to PIA Privatisation

The repeal preserves prior transfers and licences so the Arif Habib‑led consortium can move from takeover to implementation.

Overview

  • President Asif Ali Zardari gave assent on June 12, 2026, to the Pakistan International Airlines Corporation (Conversion) (Repeal) Bill, formally removing the last statutory barrier to the airline’s privatisation.
  • The repeal explicitly preserves all orders, transfers, licences and contracts made under the 2016 Conversion Act so existing deals and operational changes remain valid during implementation.
  • A consortium led by Arif Habib Corporation won a televised auction on December 23, 2025, for a 75% stake with a Rs135 billion bid and has indicated plans to buy the remaining 25% government stake.
  • The consortium assumed operational control around April 2026 and has committed about Rs125 billion of the proceeds to fleet modernisation, route expansion, debt management and other operational reforms.
  • The government has set a Rs160.5 billion privatisation target for fiscal 2026‑27 and is counting on PIA and other state‑owned enterprise sales to meet that goal, a move tied to IMF‑backed reform commitments.