The move comes as authorities seek to finalize ownership and operational transition after the airline’s sale to a private consortium in late 2025, with officials describing the ordinance as essential to completing the transaction framework.
PIA assets ordinance clears legal pathway for asset transfer
The ordinance, formally known as the PIA Corporation (Conversion) (Repeal) Ordinance, 2026, was approved on the recommendation of the prime minister and is designed to fulfill statutory requirements for transferring selected assets to the new private ownership structure.
According to official statements, the assets include PIA-owned properties in Karachi, Lahore, and Peshawar, including planetariums, land parcels, offices, and sports facilities.
The Express Tribune reported that the ordinance specifically aims to complete legal formalities necessary for transferring assets linked to the privatisation deal, which had been pending due to regulatory constraints.
Similarly, state media and official communications highlighted that the ordinance removes procedural barriers that previously slowed down final asset handover to the successful bidder.
PIA assets ordinance and privatisation framework
The airline’s restructuring accelerated after its privatisation in December 2025, when a consortium led by Arif Habib Group acquired a majority stake. The transaction marked one of Pakistan’s largest state-owned enterprise divestments in recent years.
Officials said the ordinance ensures compliance with legal requirements under the privatisation framework, enabling smooth transition of both ownership and operational assets.
Business Recorder reported that the legal measure is aimed at completing transfer obligations tied to the restructuring deal and formalizing asset movement to the buyer.
Background: earlier legal reforms and privatization steps
The latest ordinance builds on earlier reforms introduced to facilitate the airline’s privatization. In 2023, the federal cabinet approved legal amendments to remove structural and legal obstacles in selling state-owned enterprises, including PIA.
An earlier report by Profit Pakistan Today detailed how those measures were designed to streamline privatization processes and reduce litigation risks that had historically delayed asset sales.
By 2024 and early 2025, policy momentum shifted toward full divestment of the airline, culminating in the finalized transaction structure completed later that year.
The News International reported that the latest ordinance is part of broader efforts to finalize the privatization process and transfer management control to the private sector.
What happens next after the PIA assets ordinance
With the ordinance now in effect, authorities are expected to proceed with the physical transfer of assets and final settlement of ownership rights under the privatization agreement.
Officials indicated that remaining procedural steps will focus on completing documentation, verifying asset inventories, and ensuring regulatory compliance before full operational control is handed over.
Daily Times reported that the ordinance is a critical step in enabling legal transfer processes and supporting the final phase of restructuring Pakistan’s national airline.
As the process moves forward, the government is expected to conclude remaining administrative steps ahead of full transition deadlines set under the privatization timeline.
Conclusion
The approval of the PIA assets ordinance marks a decisive legal milestone in Pakistan’s ongoing effort to restructure and privatize its national carrier. By resolving key asset transfer barriers, the government has paved the way for the final phase of PIA’s transition into private ownership, a process years in the making.
