The Pakistan Stock Exchange (PSX) hosted a gong ceremony to mark the successful privatization of Pakistan International Airlines (PIA), a landmark transaction valued at Rs. 135 billion.
The event was attended by Muhammad Ali, advisor to the prime minister on privatization and chairman of the Privatization Commission of Pakistan.
Other attendees included Muhammad Ali Farid Khwaja, commissioner of the Securities and Exchange Commission of Pakistan (SECP); Arif Habib; Aqeel Karim Dhedhi; PSX Chairman Ruhail Muhammad and members of the board of directors; Pakistan Banks Association Chairman and Bank of Punjab CEO Zafar Masud; Central Depository Company CEO Badiuddin Akber; National Clearing Company of Pakistan Limited CEO Naveed Qazi; and representatives of the Pakistan Stock Brokers Association, leading banks, brokerage houses, and asset management companies.
The ceremony marked a major milestone in Pakistan’s economic reform agenda, as the privatization of PIA represents the first significant divestment of a state-owned enterprise in nearly two decades. The transaction drew strong investor interest, with bids totaling approximately Rs. 250 billion (about $900 million), reflecting growing confidence in Pakistan’s privatization process.
Addressing the ceremony, Muhammad Ali said the transaction demonstrates the government’s commitment to transparent, competitive, and market-driven privatization. He noted that restructuring loss-making state-owned enterprises is essential for fiscal stability and economic recovery, adding that the PIA deal will help reduce pressure on public finances and restore investor confidence.
SECP Commissioner Muhammad Ali Farid Khwaja said strengthening Pakistan’s capital markets is critical for sustainable economic growth, policy transparency, and long-term investor confidence.
Arif Habib described the transaction as historic, stating that of the total transaction value, Rs55 billion will go to the government, while Rs125 billion will be invested to support PIA’s future growth and expansion. He said the investment would strengthen the airline and contribute to broader economic development.
Aqeel Karim Dhedhi called the privatization a benchmark transaction among state-owned enterprises. He credited former caretaker finance minister Shamshad Akhtar for restructuring PIA’s guarantees, which helped pave the way for the deal. He also highlighted Muhammad Ali’s leadership and role in building investor confidence, and stressed the importance of continued policy consultation with capital market stakeholders to ensure sustainable reforms.
PSX CEO Farrukh H. Sabzwari said the gong ceremony commemorates not only the privatization of PIA but also Pakistan’s broader economic transformation. He noted that the process was conducted transparently and coincided with Pakistan’s transition to the T+1 settlement system, placing the country among the first ten globally to adopt the mechanism. He added that both the PIA transaction and the recent rally in the stock market reflect the strength and confidence of the local investor base, with nearly $1 billion committed by domestic investors in the PIA deal alone.
The ceremony also acknowledged PIA’s legacy, which began as Orient Airways in 1946 before becoming the national carrier in 1955. Over the decades, PIA achieved several aviation milestones, including becoming the first Asian airline to introduce jet service in 1960 and the first non-Communist airline to operate flights to China in 1964. The privatization marks a new chapter for the airline, positioning it for renewed growth and competitiveness.
