Prime Minister Shehbaz Sharif and Chief of Defence Forces and Army Staff Field Marshal Asim Munir attended a ceremony in Islamabad on Thursday, where documents pertaining to the transaction of Pakistan International Airlines’ (PIA) acquisition were signed.

The government and a consortium led by Arif Habib Corporation Limited are the two signatories, with the latter winning the auction for 75 per cent shares of PIA for Rs135 billion in December last year.

As the ceremony commenced, Adviser to the PM on Privatisation Muhammad Ali thanked the premier and the army chief for their “immense hard work” and “support” in the process of PIA’s privatisation.

“Had it not been for their guidance and engagement, we would not be here today. I have no qualms in saying that today we are here because of their efforts,” Ali said.

He said today’s signing marked “one of the most significant milestones undertaken by the current government”, adding that the transaction was completed in a very efficient and transparent manner. And the highest bidder won the auction for PIA after a competitive process, he said.

The PM’s adviser further stated that the airlines’ privatisation had turned out to be “largest transaction in the history of privatisation in Pakistan”.

“Under this transaction, the investment by all consortium members will add up to Rs180bn, which is equivalent to around $650 million. From this amount, Rs125bn, which is equivalent to $450m, will be invested in PIA and Rs55bn, equivalent to $200m, will be paid to the government,” he detailed.

The growth capital invested in PIA would be used for fleet expansion, service improvement, private-sector management and to take the airline “back to its glory days”, he continued.

Ali said PIA’s privatisation had proved that “Pakistan means business”.

Moreover, he added, “it has also shown that our privatisation programme is aggressive, that the government has decided to sold its loss-making and commercial enterprises, and most importantly, that we have the capacity to structure complex transactions”.

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