The Pakistan Stock Exchange (PSX) held a gong ceremony to commemorate the successful privatization of Pakistan International Airlines (PIA), in a landmark transaction valued at Rs. 135 billion.
The event was attended by Muhammad Ali, Adviser to the Prime Minister on Privatization and Chairman of the Privatization Commission of Pakistan, along with senior figures from across the financial sector. Participants included SECP Commissioner Muhammad Ali Farid Khwaja, Arif Habib, Aqeel Karim Dhedhi, PSX Chairman Ruhail Muhammad and members of the PSX board, 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 from the Pakistan Stock Brokers Association, leading banks, brokerage houses, and asset management companies.
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The ceremony marked a significant milestone in Pakistan’s economic reform program, as the privatization of PIA represents the first major divestment of a state-owned enterprise in nearly 20 years. The transaction attracted strong investor interest, with bids totaling around Rs. 250 billion (approximately $900 million), reflecting renewed confidence in the country’s privatization framework.
Addressing the gathering, Muhammad Ali said the deal underscores the government’s commitment to a transparent, competitive, and market-driven privatization process. He emphasized that restructuring and divesting loss-making state-owned enterprises is vital for fiscal sustainability and economic recovery, noting that the PIA transaction will help ease pressure on public finances and strengthen investor confidence.
SECP Commissioner Muhammad Ali Farid Khwaja highlighted the importance of deepening and strengthening capital markets to support long-term economic growth, policy clarity, and investor trust.
Arif Habib termed the transaction historic, stating that Rs. 55 billion from the total value will go directly to the government, while Rs. 125 billion is earmarked for PIA’s growth and expansion. He said the fresh investment would help revitalize the airline and contribute to broader economic activity.
Aqeel Karim Dhedhi described the deal as a benchmark for future state-owned enterprise privatizations. He credited former caretaker finance minister Shamshad Akhtar for restructuring PIA’s guarantees, which facilitated the transaction, and praised Muhammad Ali’s leadership in building investor confidence. He also stressed the need for continued policy consultation with capital market stakeholders to ensure sustainable reform momentum.
PSX CEO Farrukh H. Sabzwari said the gong ceremony symbolizes not only PIA’s privatization but also Pakistan’s broader economic transition. He noted that the process was conducted transparently and coincided with Pakistan’s shift to the T+1 settlement system, placing the country among the first ten globally to adopt the mechanism. He added that both the PIA deal and the recent stock market rally reflect strong domestic investor participation, with nearly $1 billion committed locally to the transaction.
The ceremony also paid tribute to PIA’s history, which began as Orient Airways in 1946 before becoming the national carrier in 1955. Over the years, the airline achieved several milestones, including becoming the first Asian carrier to introduce jet service in 1960 and the first non-Communist airline to operate flights to China in 1964. The privatization marks a new phase for PIA, aimed at restoring competitiveness and driving future growth.
