Summary President Asif Ali Zardari signs PIA Conversion Repeal Bill 2026, completing all legal requirements for the privatization process of PIACL
ISLAMABAD (Dunya News) – President Asif Ali Zardari on Friday gave his assent to the Pakistan International Airlines Corporation (Conversion) (Repeal) Bill, 2026, completing a key legal requirement linked to the privatization of the national flag carrier.
With the President's approval, all necessary legal formalities and statutory requirements for the completion of the privatization process of Pakistan International Airlines Company Limited (PIACL) have now been fulfilled.
The legislation was passed by the Senate on June 10, 2026, and was subsequently approved by the National Assembly on June 11, 2026, before being forwarded to the President for final assent.
The presidential approval marks the completion of the parliamentary and legal process required under the law for the privatization framework of PIACL.
DEFENCE MINISTER TABLES BILL
On Thursday, the bill was presented in the House by Defence Minister Khawaja Asif and was approved by a majority vote.
According to the statement of objects and reasons accompanying the legislation, the Pakistan International Airlines Corporation (Conversion) Act, 2016, had served its intended purpose of facilitating the restructuring and privatization process of the national carrier. The government maintains that repealing the law is necessary to finalise the post-privatization legal and contractual arrangements.
The new legislation provides for the repeal of the 2016 law while preserving the validity of actions, decisions, approvals, transfers, agreements and other measures undertaken under the earlier legislation. It also ensures that rights, obligations and liabilities arising from those actions remain legally protected and continue to have effect.
The government introduced the repeal bill following the successful privatization of PIA, arguing that the legal framework created to transform the airline into a corporate entity is no longer required now that the privatization process has been completed.
PIA was privatized on December 23, 2025. A consortium led by the Arif Habib Corporation won a 75% stake in the airline for Rs 135 billion (approximately $482 million).
The consortium also included the Fauji Fertilizer Company and other corporate entities – AKD Group, Fatima Fertilizer, The City School, Lake City Holdings.
