Privatization plan of PIA approved by new board of directors
The approval for the privatization and restructuring plan of Pakistan
International Airlines (PIA) has been granted by its board of directors.
This decision was conveyed through a notice to the Pakistan Stock
Exchange (PSX) on Tuesday, indicating that in its 83rd meeting on March 25,
2024, the board approved the Scheme of Arrangement (SOA) for the restructuring
and privatization of Pakistan International Airlines Corporation Limited
(PIACL), along with its accompanying procedures, to be submitted to the
Securities and Exchange Commission of Pakistan (SECP).
PIA's
financial matters to be transferred to Privatization Commission
Additionally, it was reported that the plan also addressed various
proposals concerning the future of the airline's workforce.
Previously, the government had enlisted the services of Ernst
& Young, a global financial advisory firm, to craft a strategy for the
financially struggling airline. This plan was finalized during the interim
government's tenure.
The International Monetary Fund (IMF) has advocated for the
privatization of state-owned enterprises as a means to revitalize the ailing
economy. Sources indicate that Ernst & Young's plan, presented to the
board, included discussions on a voluntary retirement scheme, along with
recommendations for the retirement of employees with less than 4 years of
service remaining.
PIA’s
loss for the year increases to Rs67bn
The Board of Directors of PIA had been inactive since October
2023. However, the federal cabinet recently approved its reconstitution,
aligning with the necessity to seek approval for significant decisions
concerning the company.
Source: Profit Pakistan