Pakistan has taken a major step toward privatizing Pakistan International Airlines (PIA) after shareholders approved the divestment of a 75 percent stake in the airline.
The decision was finalized during an Extraordinary General Meeting (EGM) of PIA Holding Company Limited(PIAHCL) held on April 6, where the resolution received formal approval.
Under the agreement, the transaction will be executed through a mix of direct share transfer and dilution of existing shares via fresh subscription by PIA Equity Limited. This structure allows investors to gradually take control while injecting new capital into the struggling airline.
In a key development, shareholders also approved the potential future sale of the remaining 25 percent stake. This would be triggered if PIA Equity Limited exercises its call option under the Share Purchase and Subscription Agreement.
Once the option is exercised and all required conditions are fulfilled, PIAHCL will be obligated to transfer the remaining shares effectively paving the way for full privatization of the national carrier.
To streamline the process, the company has authorized its Chief Executive Officer and Company Secretary to finalize and execute all necessary agreements and transaction documents required to complete the divestment.
The move marks a significant milestone in Pakistan’s long-standing efforts to privatize PIA, which has faced persistent financial challenges and mounting losses in recent years.
