PAF-controlled entity to assume control of PIA's Precision Engineering Complex
Pakistan International Airlines Holding Company Limited (PIAHCL) has approved a plan to transfer its Precision Engineering Complex (PEC) to a new entity under the Pakistan Air Force (PAF), in line with directives from the federal government.
This decision was announced in a notice to the Pakistan Stock Exchange (PSX) following the 16th board meeting held in Islamabad on September 23, 2025.
Under the approved Scheme of Arrangement, PEC will be carved out from PIAHCL and integrated into Precision Engineering Complex (Private) Limited, a PAF-controlled entity. The necessary filings will be made with the Securities and Exchange Commission of Pakistan (SECP) to formalize the transfer.
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to sell PIA’s Precision Engineering Complex to PAF for rs6.5 billion
The PEC, located at Pakistan International Airlines, is a key manufacturer of high-precision parts for the aerospace and other sectors. It serves major global clients, including General Electric, Airbus, and Boeing, and offers a wide range of capabilities such as investment casting, machining, optics, electrical and electronics, and composites.
This move is part of PIA’s broader restructuring strategy, which aligns with efforts to privatize the national airline. Privatization remains a key condition of Pakistan’s $7-billion bailout agreement with the International Monetary Fund (IMF). Notably, PIA has recently reported its first pre-tax profit in two decades and is preparing to relaunch direct flights to the UK next month—one of its most profitable routes.
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government endorses restructuring of Pakistan International Airlines (PIA)
There has been growing interest in PIA’s privatization from several prominent domestic business groups, including Airblue, Lucky Cement, and Fauji Fertilizer, signaling potential changes ahead for the national carrier.
Source: Profit Pakistan