Pakistan International Airlines (PIA) said on Monday that it officially transitioned to new management under PIA Equity Ltd, a special purpose vehicle of the Arif Habib Consortium.

Prime Minister Shehbaz Sharif, Deputy PM and Foreign Minister Ishaq Dar and Chief of Defence Forces and Chief of the Army Staff Field Marshal Asim Munir were also present at the occasion.

In a statement, PIA said the transition marked “a bold new chapter of modernisation and global excellence” for the national flag carrier.

The airline said a Rs125 billion equity injection had fully capitalised PIA, positioning it to modernise operations, improve service standards and preserve its legacy.

“As the new ownership officially takes over today, we deeply understand that the trust of a nation isn’t simply transferred on a document. Trust is earned—mile by mile, smile by smile, year by year. We know this. And we accept the challenge wholeheartedly," the press release quoted the chairman of PIA Equity Ltd as saying.

PIA said the new chapter would focus on modernisation, service improvement and honouring the airline’s heritage as it moves under the new ownership structure.

The Ministry of Privatisation, in a statement, said that the Privatisation Commission had completed the first financial close of PIA's privatisation, marking what the ministry described as the country’s largest privatisation transaction.

The statement further stated that the milestone reflected Pakistan’s commitment to structuring complex transactions through a transparent, fair and competitive process.

"The transaction brings a total investment commitment of Rs180 billion, including Rs125 billion in fresh capital to transform PIA and Rs55 billion payable to the Government of Pakistan," it added.

PM Shehbaz congratulated everyone involved and said it marked another "important milestone" in Pakistan’s economic reform journey.

"The successful first financial closing of the PIA privatisation transaction, and the transfer of management control to the investor consortium, marks the beginning of a new chapter for our national carrier. With a transformational investment to modernise and strengthen PIA, we are laying the foundation for its revival while reinforcing investor confidence in Pakistan."

FM Dar said the "complex transaction" was completed through hard work, sincerity, efficiency and close coordination across government institutions, reinforcing the government’s "commitment to transparent governance, economic reforms and investor confidence".

Last year in December, the government sold its 75% stake in PIA for Rs10.1 billion cash to a consortium, marking the completion of the first major privatisation transaction in two decades by offloading the white elephant.

The consortium of Habib, Fawad Ahmed Mukhtar, Gohar Ejaz and Aqeel Karim Dhedhi — Pakistan's renowned businesspersons, placed the highest bid of Rs135 billion for the 75% shares in the 13th round of open auction. It beat another cash-rich consortium led by Muhammad Ali Tabba.

It was the second attempt to sell the PIA in over one year and marked the first successful transaction since 2005 when the government had sold K Electric, the country's largest power distribution company. PM Shehbaz had desired that the PIA should be sold for Rs200 billion.

Read More: Govt finally cuts loose 'white elephant' PIA

From the start, the Arif Habib Group took an aggressive approach compared to the only competitor, which was initially conservative and added Rs250 million in each of the first eight rounds of the auction. After the eighth round, the Tabba group sought a half-hour break to internally consult before finally "congratulating Arif Habib" when he raised the price tag to Rs135 billion.

To make the second attempt successful, the government had also waived 18% sales tax on aircraft lease, given Rs36 billion tax credit to the bidders and extended the timeframe to clear the current over Rs33 billion liabilities of the Federal Board of Revenue and the Civil Aviation Authority.