Pakistan issues key ordinance relating to PIA's restructuring ahead of IMF board meeting

An important ordinance concerning the restructuring of the Pakistan International Airlines (PIA) has been issued ahead of a meeting of the International Monetary Fund (IMF) Executive Board, introducing key legal changes to facilitate asset management and compliance requirements.

According to official documents, the PIA Corporation Conversion Gazette Ordinance 2026 has been promulgated, under which the earlier PIA Corporation Conversion Act 2016 has been repealed. However, sub-section one of Section 7 of the repealed law will remain effective.

The ordinance states that all decisions, agreements and measures taken under the previous Act will continue to hold legal validity. Additionally, licences, permits and approvals issued under the repealed framework will be granted legal protection.

Officials said the ordinance introduces significant changes to the legal structure of PIA, particularly in relation to fulfilling legal requirements for the transfer of certain assets of the national carrier.

The move comes a day after the ordinance received approval from the president, and is being viewed as part of broader efforts to align PIA’s restructuring process with financial and legal benchmarks ahead of the IMF Executive Board review.