PSX hosts Gong Ceremony to mark successful privatisation of PIA

KARACHI: The Pakistan Stock Exchange (PSX) hosted a Gong Ceremony to mark the successful privatisation of Pakistan International Airlines (PIA), a landmark transaction valued at Rs 135 billion.
The ceremony was graced by Advisor to the Prime Minister on Privatisation and Chairman of the Privatisation Commission of Pakistan, Muhammad Ali. Distinguished guests included Muhammad Ali Farid Khwaja, Commissioner of the Securities and Exchange Commission of Pakistan (SECP); prominent business leaders Arif Habib and Aqeel Karim Dhedhi; Chairman PSX Ruhail Muhammad and members of the Board of Directors; Chairman Pakistan Banks Association (PBA) and CEO Bank of Punjab (BOP) Zafar Masud; CEO Central Depository Company (CDC) Badiuddin Akber; CEO National Clearing Company of Pakistan Limited (NCCPL) Naveed Qazi; as well as representatives of the Pakistan Stock Brokers Association, leading banks, brokerage houses, and asset management companies.
The event marked a significant milestone in Pakistan’s economic reform journey, as the privatisation of PIA represents the first major divestment of a state-owned enterprise in nearly two decades. The transaction drew strong investor interest, with bids totaling approximately Rs250 billion (USD 900 million), reflecting growing confidence in Pakistan’s privatisation process.
Addressing the ceremony at PSX, Muhammad Ali stated that the transaction reflects the government’s firm commitment to transparent, competitive, and market-driven privatisation. He emphasized that restructuring loss-making state-owned enterprises is essential for fiscal stability and economic revival, adding that the PIA deal would help reduce the financial burden on the national exchequer and restore investor confidence.
Muhammad Ali Farid Khwaja underscored the importance of strengthening Pakistan’s capital markets, noting that robust capital markets are critical for sustainable economic growth, policy transparency, and long-term investor confidence.
Arif Habib termed the transaction historic, stating that the landmark deal sets a new precedent in Pakistan’s privatisation landscape. He noted that out 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. This investment, he said, will not only strengthen the airline but also contribute to Pakistan’s broader economic development.
Aqeel Karim Dhedhi described the privatisation as a benchmark transaction, calling it one of the best-executed divestments among state-owned entities. He credited former caretaker finance minister Dr. Shamshad Akhtar for restructuring PIA’s guarantees, which paved the way for the deal’s success. He also acknowledged the leadership and vision of Muhammad Ali, stating that his commitment, strategic guidance, and ability to build investor confidence were instrumental in driving the transaction. He stressed the importance of continued policy consultation with capital market stakeholders to ensure sustainable reforms.
Speaking at the ceremony, CEO Pakistan Stock Exchange Farrukh H. Sabzwari highlighted the historical significance of the occasion. He noted that the Gong Ceremony commemorates not only the successful privatisation of PIA but also Pakistan’s broader journey of economic transformation. He pointed out that the process was conducted with full transparency and coincided with Pakistan’s transition to the T+1 settlement system, placing the country among the top ten globally to adopt this mechanism. He added that both the PIA transaction and the ongoing stock market rally reflect the confidence and depth of the local investor base. Nearly a billion dollars were put on the table by the local business community in the PIA transaction alone, underscoring the strength and commitment of domestic investors to Pakistan’s economic future.
The ceremony also paid tribute to the legacy of PIA, which began as Orient Airways in 1946 and became 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 fly to China in 1964. The successful privatisation now opens a new chapter in the airline’s history, positioning it for renewed growth and competitiveness.