Privatization Commission gives approval to sell 51% stake in
PIA
The Privatization Commission Board, chaired by Minister Fawad
Hasan Fawad, has given the green light to the transaction structure for the
sale of a 51% stake in Pakistan International Airlines (PIA). The proposal,
presented by an Ernst & Young-led consortium, suggests the majority stake's
sale, coupled with the division of PIA's assets and liabilities.
Despite the government's keen interest in attracting foreign
buyers, legal challenges have emerged, hindering the sale of a significant
number of shares to overseas investors.
Privatization
of PIA-owned Scribe Hotel in the pipeline
Government sources indicate that at least 51% of shares have
received approval, and plans are underway to involve a local partner once legal
complications are resolved. The emphasis is on a sale that includes management
control.
The caretaker government's efforts to privatize PIA are
encountering obstacles due to pending dues amounting to 281 billion rupees. The
board has approved this matter, which will now be presented to the
Privatization Committee of the Cabinet before reaching the caretaker federal
cabinet.
World
Bank consults with Pakistani government on PIA privatization strategy
The advisory report, though currently incomplete, lacks the
valuation of PIA's assets, with a deadline set for the third week of January.
Financial advisers are recommending the granting of the new buyer the option to
terminate employees after one year, with proposals to extend this period to
three years.
Additionally, there are suggestions to consolidate non-core assets
and liabilities in a holding company, making the federal government responsible
for debt and interest payments.
Source: Pro Pakistani