Pakistan’s government bifurcates Pakistan International Airlines (PIA) into two entities
Pakistan’s caretaker federal cabinet has
endorsed the restructuring of Pakistan International Airlines (PIA) and the
privatization of the First Women Bank Limited during its session held in
Islamabad on Tuesday.
Meeting of the cabinet was chaired by
Caretaker Prime Minister Anwaar-ul-Haq Kakar.
Additionally, the
cabinet approved the appointment of a financial advisor to oversee the
financial and administrative reorganization of PIA.
Government
fast-tracks PIA privatization amid financial crisis
As part of the restructuring plan, PIA
will undergo bifurcation into two separate entities: TopCo and HoldCo.
TopCo will encompass basic engineering
operations, ground handling, cargo, flight kitchen, and training, while HoldCo
will oversee departments such as PIA Investment, Precision Engineering Complex,
subsidiaries, and properties. These strategic measures aim to enhance investor
interest in PIA.
Privatization
of PIA-owned Scribe Hotel in the pipeline
Furthermore, the
cabinet instructed its privatization sub-committee to promptly address matters
pertaining to state-owned entities' outstanding claims against the national
flag carrier.
Source: Radio Pakistan