$600 million needed by PIA to fulfill its financial needs
During a meeting recently chaired by Caretaker Federal Minister
for Privatization Fawad Hasan Fawad, it was revealed that the financially
strapped Pakistan International Airlines (PIA) urgently requires $600 million
to address its financial needs.
Ernst & Young, the Financial Advisor responsible for the
divestment of PIA, presented a business plan outlining the investment roadmap
for PIA, including the immediate funding requirement of $600 million.
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The proposed plan encompasses the capital and fleet needs of the
airline in the short and medium term, aiming to transform it into a viable and
globally competitive entity.
The minister recommended further refinement of the projections
before submitting the plan for approval by the federal cabinet. The
comprehensive plan, covering legal segregation, transaction structure, business
strategy, and valuation methodology, will be presented to the federal cabinet
for final approval.
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The $600 million capital expenditure requirement spans a period of
5 to 6 years, and the final figure may undergo slight adjustments based on
further developments in the plan.
Source: Pro Pakistani