ISLAMABAD, Jun 11 (APP):The National Assembly on Thursday passed a bill repealing the Pakistan International Airlines Corporation Act, 2026, following completion of the national flag-carrier’s privatisation through a competitive bidding process that transferred full operational control to the private sector. The bill was tabled in the House by Federal Defence Minister Khawaja Muhammad Asif. Speaking on the floor, Advisor to the Prime Minister on Privatisation Muhammad Ali said the government …
NA passes bill to repeal PIA Corporation Act 2026
ISLAMABAD, Jun 11 (APP):The National Assembly on Thursday passed a bill repealing the Pakistan International Airlines Corporation Act, 2026, following completion of the national flag-carrier’s privatisation through a competitive bidding process that transferred full operational control to the private sector.
The bill was tabled in the House by Federal Defence Minister Khawaja Muhammad Asif.
Speaking on the floor, Advisor to the Prime Minister on Privatisation Muhammad Ali said the government has completed the privatisation process of Pakistan International Airlines (PIA) through an open and competitive bidding mechanism.
He said three bidders participated in the process initiated in December. He added that the winning consortium is led by Arif Habib Corporation Limited, Fatima Fertiliser Company Limited, Lake City Holdings (Private) Limited, The City School (Private) Limited, AKD Group Holdings (Private) Limited, and Fauji Fertiliser Company Limited.
He said the consortium initially holds 75 per cent shares, while an option to acquire the remaining 25 per cent has also been exercised, resulting in full operational control of the airline being transferred to the private sector.
He said the total private-sector investment is estimated at around Rs180 billion, including Rs55 billion as divestment proceeds to the government and Rs125 billion as fresh equity injection for recapitalisation of PIACL.
On the relocation of the airline’s head office, he clarified that after full privatisation, operational decisions will be taken by the board and shareholders on commercial grounds, and the government will have no legal role in such matters.
He said safeguards for employees were ensured in the agreement, adding that all employees will have job protection for 12 months after the transition, while service conditions will remain unchanged during this period.
He further said pension payments for serving employees will continue under existing arrangements, and retirees will also continue to receive pensions without interruption.
He added that all employee benefits have been protected under the Share Purchase Agreement, which has been approved by the federal cabinet and relevant ministries.
