{"id":18087,"date":"2026-07-24T13:54:29","date_gmt":"2026-07-24T13:54:29","guid":{"rendered":"https:\/\/riaabarkergillette.com\/pk\/?p=18087"},"modified":"2026-07-24T15:42:00","modified_gmt":"2026-07-24T15:42:00","slug":"islamic-financing-behind-pakistans-landmark-pia-privatisation","status":"publish","type":"post","link":"https:\/\/riaabarkergillette.com\/pk\/news-story\/islamic-financing-behind-pakistans-landmark-pia-privatisation\/","title":{"rendered":"Islamic financing behind Pakistan&#8217;s landmark PIA privatisation"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">In June 2026, management control of Pakistan International Airlines Corporation Limited (PIACL) passed to PIA Equity Limited, completing Pakistan&#8217;s first major privatisation in nearly two decades. A consortium led by Arif Habib Corporation and including Lake City Holdings had won the <a href=\"https:\/\/www.dawn.com\/news\/1962791\">December 2025 auction<\/a>, with a PKR 135 billion bid securing a 75% stake.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Behind the headline sat a financing question: how to fund an acquisition of this scale on a fully Shariah-compliant basis. Bank AL Habib Limited provided approximately PKR 5 billion in Islamic finance facilities to Lake City Holdings (Private) Limited. The facilities comprised funded financing and a non-funded standby letter of credit. They part-funded the acquisition, through PIA Equity Limited, of up to a 16.33% shareholding in PIACL under the PIA privatisation. RIAA Barker Gillette acted as legal counsel to the Bank, advising on the financing structure and drafting and negotiating the financing agreements and security documents, including mortgage deeds. The firm also assisted with satisfying and certifying the conditions precedent.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\">&#8220;The PIA privatisation shows how Islamic finance can fund transactions of national significance,&#8221; said <a href=\"https:\/\/riaabarkergillette.com\/pk\/our-team\/bilal-shaukat\/\">Bilal Shaukat<\/a>, Managing Partner. &#8220;As Pakistan moves towards a riba-free banking system by 2028, Shariah-compliant structures will increasingly anchor the country&#8217;s largest acquisitions.&#8221;<\/p>\n<\/blockquote>\n\n\n\n<p class=\"wp-block-paragraph\">The wider policy setting reinforces that trajectory. The Twenty-Sixth Constitutional Amendment requires the complete elimination of riba by 1 January 2028. In parallel, the State Bank has made the transition to Shariah-compliant banking a strategic goal, and Islamic institutions already hold a growing share of the sector&#8217;s assets. Meanwhile, the PIA privatisation has re-opened the pipeline for further state divestments. Together, these currents point to Islamic structures featuring prominently in the acquisition financings to come. The practical test will be documentation: security packages, undertakings and conditions engineered for Shariah compliance without diluting lender protection.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/riaabarkergillette.com\/pk\/our-team\/bilal-shaukat\/\">Bilal Shaukat<\/a>\u00a0(Managing Partner \u2013 Pakistan) led the team, which included Ahmed Mohid (Associate &#8211; Lahore).<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For more information on Islamic banking and finance transactions, contact <a href=\"https:\/\/riaabarkergillette.com\/pk\/our-team\/bilal-shaukat\/\">Bilal Shaukat<\/a>\u00a0today.<\/p>\n\n\n\n<p class=\"has-text-align-center wp-block-paragraph\">\u2026<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">RIAA Barker Gillette is Pakistan\u2019s premier law firm, with an on-the-ground presence in three major cities in Pakistan: Karachi, Islamabad and Lahore,&nbsp;and&nbsp;affiliated offices in Dubai (DIFC)&nbsp;and&nbsp;London.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The firm practices in all areas of corporate, commercial&nbsp;and&nbsp;dispute resolution law.&nbsp;Leading international legal directories consistently recognise the firm as&nbsp;a&nbsp;top-tier law firm in Pakistan.<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"103\" src=\"https:\/\/riaabarkergillette.com\/pk\/assets\/uploads\/2025\/07\/Lex_Mundi_1-line_Member_Azure_RGB-1024x103.jpg\" alt=\"RIAA Barker Gillette is the exclusive member firm in Pakistan for Lex Mundi, the world's leading network of independent law firms with in-depth experience in over 125 countries worldwide.\" class=\"wp-image-17156\" srcset=\"https:\/\/riaabarkergillette.com\/pk\/assets\/uploads\/2025\/07\/Lex_Mundi_1-line_Member_Azure_RGB-1024x103.jpg 1024w, https:\/\/riaabarkergillette.com\/pk\/assets\/uploads\/2025\/07\/Lex_Mundi_1-line_Member_Azure_RGB-300x30.jpg 300w, https:\/\/riaabarkergillette.com\/pk\/assets\/uploads\/2025\/07\/Lex_Mundi_1-line_Member_Azure_RGB-768x77.jpg 768w, https:\/\/riaabarkergillette.com\/pk\/assets\/uploads\/2025\/07\/Lex_Mundi_1-line_Member_Azure_RGB-1536x155.jpg 1536w, https:\/\/riaabarkergillette.com\/pk\/assets\/uploads\/2025\/07\/Lex_Mundi_1-line_Member_Azure_RGB.jpg 1986w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">RIAA Barker Gillette\u00a0is the exclusive member firm in Pakistan for\u00a0<a href=\"https:\/\/www.lexmundi.com\">Lex Mundi<\/a>, the world\u2019s leading network\u00a0of independent law firms with in-depth experience in over 125 countries worldwide.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>RIAA Barker Gillette acted as legal counsel to Bank AL Habib Limited on approximately PKR 5 billion in Shariah-compliant facilities financing an acquisition under the PIA privatisation. The mandate reflects the growing role of Islamic finance in Pakistan&#8217;s largest transactions.<\/p>\n","protected":false},"author":9,"featured_media":18088,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_coblocks_attr":"","_coblocks_dimensions":"","_coblocks_responsive_height":"","_coblocks_accordion_ie_support":"","footnotes":""},"categories":[9],"tags":[68,18],"class_list":["post-18087","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-story","tag-aviation","tag-banking-and-finance"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.1 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Islamic financing behind Pakistan&#039;s landmark PIA privatisation - RIAA Barker Gillette Islamic financing behind Pakistan&#039;s landmark PIA privatisation<\/title>\n<meta name=\"description\" content=\"RIAA Barker Gillette advised Bank AL Habib Limited on PKR 5 billion Islamic finance facilities supporting the landmark PIA privatisation.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/riaabarkergillette.com\/pk\/news-story\/islamic-financing-behind-pakistans-landmark-pia-privatisation\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Islamic financing behind Pakistan&#039;s landmark PIA privatisation - 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