An important step in Pakistan’s economic reform agenda was completed on Thursday as the privatisation agreement of Pakistan International Airlines (PIA) was formally signed during a ceremony held in Islamabad. The development marks a significant milestone in the government’s efforts to restructure state-owned enterprises and improve their long-term sustainability.

Prime Minister Shehbaz Sharif attended the ceremony alongside Chief of Defence Forces Field Marshal Asim Munir. Addressing the gathering, the prime minister stated that the entire privatisation process was conducted in a transparent and professional manner. He expressed confidence that the agreement would help restore PIA’s former stature and strengthen its image as the country’s national carrier.

The prime minister emphasized that improved management and better services would play a key role in enhancing the airline’s credibility and dignity at both domestic and international levels. He also acknowledged the collective efforts of the government team involved in the process, highlighting that institutional coordination was essential for achieving this outcome.

Prime Minister Shehbaz paid special tribute to the role of Field Marshal Asim Munir, noting that his support and guidance were instrumental in ensuring the smooth completion of the privatisation process. He described the agreement as a positive signal for investors and a step toward stabilizing Pakistan’s struggling aviation sector.

Prime Minister’s Adviser on Privatisation, Muhammad Ali, also addressed the ceremony and thanked the prime minister and the Army Chief for their leadership. He stated that without their full backing, the privatisation of PIA would not have been possible. According to him, the signing of the agreement reflects the government’s commitment to transparency and effective governance.

Muhammad Ali termed the event a landmark achievement for the present government. He said the PIA privatisation deal was completed in line with international standards and formed a central part of the broader reform strategy aimed at reducing financial burdens on the national exchequer.

Under the terms of the agreement, the winning consortium will make a total investment of Rs180 billion, equivalent to around $650 million. Of this amount, Rs125 billion, or approximately $450 million, will be invested directly into PIA to support its operational revival and modernization. The remaining Rs55 billion, equal to about $200 million, will be paid to the government.

It is worth recalling that Arif Habib Corporation Limited secured the bid in December last year, acquiring a 75 percent stake in Pakistan International Airlines for Rs135 billion. The deal was closely watched due to PIA’s long-standing financial challenges and its importance as a national institution.

The signing of the privatisation agreement is being seen as a turning point for PIA, with expectations that professional management, fresh investment, and structural reforms will help the airline move toward financial stability and improved service standards in the coming years.