In a notable development making headlines this week, • All local, international regulatory approvals completed, adviser says • Islamabad airport privatisation planned during FY27 • Karachi, Lahore airport outsourcing process to begin without delay • Five Discos targeted for sale or concession ISLAMABAD: Pakistan International Airlines will be fully and formally handed over to its new owners before the end of the current month, completing a privatisation transaction that had been delayed for months after bidding in December last year since of global regulatory requirements. “ It will be handed over to the new buyers by the end of this month, ” Prime Minister ’ s Adviser on Privatisation Muhammad Ali told Dawn over the weekend, adding that all local and international regulatory approvals had now been completed.

The Broader Picture

This story does not exist in isolation — the background provides crucial perspective.

Ali said the domestic flag carrier ’ s operating rights in various countries had to be transferred to the privatised operator, requiring several regulatory processes, which had now been completed.

He declared the exemption of equipment, accessories and lease and purchase of aircraft from taxes for 15 years subsequent to privatisation had been cleared by the International Monetary Fund to facilitate the transaction and given legal cover in the Finance Bill 2026-27.

According to those with knowledge of the situation, at the post-budget press conference, Finance Secretary Imdadullah Bosal had also said special tax exemptions for PIA were part of the privatisation agreement and could not be extended to other operators at this stage.

Expert Analysis

Specialists in the field say the implications extend further than initially apparent.

In response to a question, Ali said Islamabad International Airport would be privatised throughout FY2026-27, for which the Asian Development Bank had been selected as transaction adviser with certain changes in contract conditions.

Further developments have shed additional light on the matter. the Manila-based lending agency would be formally appointed as transaction adviser very soon after approval by the Cabinet Committee on Privatisation, he said.

In a detail that has not gone unnoticed, he said the procedure for hiring financial advisers for outsourcing Karachi and Lahore international airports would begin immediately, as previous government-to-government discussions had not progressed as desired.

Impact on Americans

This development is likely to influence decisions and discussions in the weeks ahead.

Ali indicated the target for major sale transactions during FY27 included five power distribution companies in two lots.

In a detail that has not gone unnoticed, the sale of Faisalabad, Gujranwala and Islamabad Discos is expected in October, November and December this year, followed by long-term concessions for Hyderabad and Sukkur Discos.

In a related development, in addition, Islamabad International Airport, Zarai Taraqiati Bank Ltd and House Building Finance Corporation are also expected to be completed well before June 2027, he said.

It has also emerged that fauji Fertiliser Company, which was originally a competing bidder, sidestepped the bidding and later became part of the transaction with an additional 25pc share acquired by the consortium, becoming the second-largest shareholder.Under the latest shareholding pattern, Arif Habib ’ s Fatima Fertiliser is the lead owner with a 34.1pc stake, followed closely by Fauji Fertiliser with 33.9pc.

What has become increasingly clear is that the consortium will now have 100pc control of the national flag carrier.

Looking Ahead

The developments detailed here represent only the latest chapter in an ongoing story. As more information becomes available, the full picture is expected to come into sharper focus for those following the situation.