Legislation completes key legal step as government moves ahead with long-delayed airline sell-off plan.
Image: The News Pakistan
President Asif Ali Zardari on Friday approved the Pakistan International Airlines Corporation (Conversion) (Repeal) Bill, 2026, completing a major legal requirement for the privatisation of Pakistan International Airlines Company Limited (PIACL).
According to the presidency, the assent finalises the legislative process needed to advance the privatisation of the national flag carrier. The bill had already been passed by the Senate on June 10 and the National Assembly on June 11 before being sent for presidential approval.
The repeal of the 2016 Pakistan International Airlines Corporation (Conversion) Act removes the legal framework that previously governed the airline, clearing the way for the next phase of the divestment process.
A consortium led by Arif Habib Corporation had earlier secured a 75% stake in PIACL through a public auction in December 2025, in a deal worth Rs135 billion. The government is expected to retain the remaining 25% share, although the consortium has indicated interest in acquiring full ownership later.
Officials say the proceeds from the transaction will be reinvested into fleet upgrades, route expansion, and debt restructuring as part of broader efforts to improve the airline’s performance and financial stability.
