President Asif Ali Zardari on Friday gave his assent to the Pakistan International Airlines Corporation (Conversion) (Repeal) Bill, 2026, fulfilling all necessary legal requirements for the national carrier’s privatisation.

The original bill, which now stands repealed, was passed in January 2016, and sought to convert the national flag carrier into a public limited company.

Confirming the development in a statement, the presidency said that following the approval, “all the necessary legal formalities and requirements for the completion of the privatisation process of Pakistan International Airlines Company Limited (PIACL) have been fulfilled”.

It added that the bill was passed by the Senate on June 10 and subsequently received approval from the National Assembly on June 11, before being sent to the president for his assent.

A consortium led by Arif Habib Corporation Limited had won the auction for 75 per cent shares of PIA in December last year, making a winning bid of Rs135 billion.

The documents pertaining to the transaction were signed during a ceremony in January, which was attended by Prime Minister Shehbaz Sharif.

The Arif Habib-led consortium aims to transform the loss-making airline through operational restructuring, fleet expansion, and improved customer service.

To ensure the success of its revival plan, the consortium has plans to acquire the remaining 25 per cent government stake in PIA, thereby taking full control of decision-making.

Arif Habib, chairman of the investment firm that headed the consortium, has said that PIA’s privatisation would lead to an increase in employment in the airline as the new owners were looking to expand its business.

A day after PIA’s privatisation, Adviser to the Prime Minister on Privatisation Muhammad Ali had also told Reuters that the buyer must retain all employees for 12 months after the transaction, with contracts unchanged.

Fauji Fertiliser was also initially in the race to acquire PIA shares but it later opted out of the bidding process. After the PIA auction, it joined the consortium led by Arif Habib Corporation Limited.