The successful completion of the first closing of the PIACL privatisation transaction marks a significant milestone in the government's economic reform programme, said a press release issued by the Commission.
"It reflects the government’s commitment to implement a transparent, competitive and investor-friendly privatisation agenda under the vision of Prime Minister Shehbaz Sharif, who has consistently championed a greater role for the private sector as a driver of sustainable economic growth, investment and employment," the statement added.
The bidding process, held on December 23, 2025, led to a total investment commitment by the consortium of Rs180 billion, out of which Rs55bn will be paid to the government for the sale of PIACL and Rs125bn will be injected into PIACL to support the long-term transformation of PIACL and revive the national carrier to its past glory, the press release stated.
Accordingly, following achievement of the conditions precedent, under the first closing, the Consortium today has completed Rs10 billion paid to the government as Sale proceeds and Rs80bn injected into PIACL as fresh equity to strengthen the airline's financial position, support fleet expansion and modernisation, expand its route network, enhance operational performance and customer service, and position the airline for long-term growth.
The second closing is scheduled to take place within 12 months of the first closing, in accordance with the terms of the SPSA, whereby the consortium has committed to invest a further Rs45 billion into PIACL.
"The consortium which has also served its intent to buy the remaining 251f the PIACL shares as a Call option under the SPSA for an additional payment of Rs45 billion to the Government of Pakistan," it added.
The Privatisation Commission highly commended the support and guidance of Deputy Prime Minister Ishaq Dar, finance minister and the Cabinet Committee on Privatisation, the statement added.
Since execution of the SPSA on 29th January 2026, the Privatisation Commission and other government stakeholders, including the Ministry of Defence, have completed challenging condition precedents under the SPSA.
These included domestic and overseas regulatory approvals, lessors and commercial consents, aviation policy reforms, corporate approvals, restructuring of taxation relating legacy liabilities, aircraft financing arrangements, governance changes, tax-related matters, airport infrastructure arrangements, and the provision of transaction security by the investor consortium.
The Conditions Precedent were completed within an exceptionally compressed timeframe while maintaining uninterrupted airline operations, preserving critical commercial relationships and aviation certifications, protecting employees' interests, and ensuring continuity of services for passengers throughout the transition.
Speaking on the occasion, Advisor to the Prime Minister on Privatisation, Muhammad Ali, said that this transaction demonstrates Pakistan''s ability to execute complex strategic transactions through a transparent, fair, competitive and professionally managed process.
It reinforces the govt's commitment to economic reform, fiscal responsibility and greater private-sector participation while strengthening confidence among domestic and international investors.
The government remains committed to protecting the interests of employees, passengers and consumers while ensuring a smooth transition and uninterrupted airline operations.
All applicable aviation laws and regulatory oversight will continue to apply, he added.
The Privatisation Commission acknowledges the support of the federal cabinet and the contributions of the Privatisation Commission Board, participating ministries, particularly the Ministry of Defence, the Ministry of Finance and other government institutions, local regulatory authorities and the financial advisory consortium for the transaction led by EY Consulting LLC Dubai for their contribution and efforts leading to the successful first closing.