Pakistan on Monday completed the Rs180 billion privatisation of Pakistan International Airlines Corporation Limited (PIACL), with management control formally transferred to PIA Equity Ltd, a special purpose vehicle (SPV) of the Arif Habib Corporation-led consortium.

The transfer marks the successful completion of the privatisation process launched last year and represents Pakistan’s first major privatisation in two decades.

Prime Minister Shehbaz Sharif described the successful first financial closing of the transaction and the transfer of management control as an important milestone in Pakistan’s economic reform journey.

In a statement, the prime minister said the handover marked the beginning of a new chapter for the national carrier and expressed confidence that the transformational investment would modernise and strengthen PIA while reinforcing investor confidence in Pakistan.

He commended Deputy Prime Minister and Foreign Minister Ishaq Dar, Field Marshal Syed Asim Munir and his team, Adviser to the Prime Minister on Privatisation Muhammad Ali, Finance Minister Muhammad Aurangzeb, the Privatisation Commission and all officials involved in completing the landmark transaction.

Sharif said the government would continue pursuing bold economic reforms to strengthen the economy, create new opportunities and secure a more prosperous future for the country.

Following the transfer of shares, the airline’s new management constituted a Board of Directors and unanimously appointed Lt Gen (retd) Anwar Ali Haider as chairman of the privatised national carrier.

The new board comprises Lt Gen (retd) Anwar Ali Haider, Jahangir Paracha, Gohar Ejaz, Arif Habib, Fazal Sheikh, Aqeel Karim Dhedhi and Farzana Feroze.

In a statement, the Privatisation Commission said the transaction demonstrated Pakistan’s commitment to executing complex deals through a transparent, fair and competitive process.

It said the agreement carries a total investment commitment of Rs180 billion, including Rs125 billion in fresh capital to transform PIA and Rs55 billion payable to the Government of Pakistan.

The commission also acknowledged the support and guidance of the prime minister, Deputy Prime Minister Ishaq Dar, Finance Minister Muhammad Aurangzeb, the Cabinet Committee on Privatisation and other officials involved in the process.

PIA, in a separate statement, said the airline had officially entered a “new chapter of modernisation and global excellence” under its new management. It said the Rs125 billion equity injection had fully capitalised the airline and would support fleet modernisation, operational improvements and higher service standards.

“As the new ownership officially takes over today, we deeply understand that the trust of a nation isn’t simply transferred on a document. Trust is earned — mile by mile, smile by smile, year by year. We know this. And we accept the challenge wholeheartedly,” the chairman of PIA Equity Ltd said.

Former federal minister and board member Gohar Ejaz congratulated the nation on the completion of the privatisation process, calling it Pakistan’s first major privatisation in 20 years and the largest transaction of its kind to date.

The completion of the deal marks a significant step in the government’s efforts to restructure state-owned enterprises, attract private investment and reduce the fiscal burden of loss-making public entities.