PIA Holding Company Limited (PIAHCL) has approved the transfer of its subsidiary, Precision Engineering Complex (PEC), to a new entity owned by the Pakistan Air Force (PAF), formalising the carve-out as part of a government-approved restructuring plan.
PIAHCL disclosed the development in its notice to the Pakistan Stock Exchange (PSX) on Monday.
PIAHCL is a public limited company currently majority-owned by the Government of Pakistan (GoP).
The company was established to succeed in specified assets, liabilities, and subsidiaries of Pakistan International Airlines Corporation Limited (PIACL), including specific business, property, rights, liabilities, and obligations of PIACL.
According to the notice, the resolution was passed by PIAHCL’s shareholders in an Extraordinary General Meeting (EGM) held on October 25, 2025. Under the decision, PEC will be carved out from PIA Holding and transferred to Precision Engineering Complex (Private) Limited, a designated company of the PAF, with effect from May 1, 2025.
“The shareholders of PIAHCL do hereby approve the Scheme of Arrangement, as amended in accordance with the proposal of the representative of the Government of Pakistan acting through the Ministry of Defence of the Government of Pakistan, for the carving out and transfer of Precision Engineering Complex (PEC) from PIAHCL to Precision Engg Comp (Private) Limited (PECPL), designated entity of Pakistan Air Force,” read the notice.
The company’s Chief Executive Officer and company secretary have been authorised to complete all related legal and regulatory formalities, including filings with the Securities and Exchange Commission of Pakistan (SECP) and obtaining no-objection certificates from relevant authorities.
The PEC at Pakistan International Airlines (PIA) manufactures high-precision parts for the aerospace industry and other industries.
It is an integrated facility that houses major engineering disciplines under one roof, including investment casting, conventional and CNC machining, optics, PCB, electrical, electronics and composites.
The PEC is a supplier to the USA and Europe and serves companies such as General Electric, Airbus Industries and Boeing.
