Plan finalized to sell majority shares of Pakistan International
Airlines (PIA)
Federal government of Pakistan is considering the sale of a
majority stake in Pakistan International Airlines (PIA), according to a
government official.
During an appearance on a private TV Channel, Coordinator to the
Prime Minister on Economy and Energy, Bilal Azhar Kayani, stated that the
Privatisation Commission would soon decide on the extent of shares to be
divested as part of the ongoing PIA privatisation process.
Azhar Kayani mentioned that the government is contemplating
selling anywhere from 51% to 100% of the national flag carrier's shares. He
also noted that once the majority shares are acquired, administrative control
of PIA will be transferred to the new owner.
Committee
established to expedite privatization of Pakistan International Airlines (PIA)
The progress on PIA's privatisation has been positive, with
several countries and global companies expressing interest in acquiring the
airline, according to the Pakistan Muslim League-Nawaz (PML-N) leader.
Regarding concerns about retired employees, Kayani explained that
matters related to PIA's retired workforce have been transitioned to the PIA
Holding Company, assuring that pension disbursements to retirees will continue
without interruption.
Additionally, Kayani mentioned that the federal government is
actively addressing issues concerning current employees, with a policy expected
to be formulated soon.
To facilitate the privatisation process, the government recently
transferred all financial liabilities, debts, and arrears of PIA to the holding
company. This step was taken to clear PIA's balance sheet, as notified to the
Pakistan Stock Exchange (PSX).
PIA
privatization encounters obstacles as ministries clash over debt transfer
Furthermore, bids for the privatisation of Pakistan International
Airlines have been invited from potential buyers, with the deadline set for May
3.
Following significant reforms within PIA, the shares of the
national flag carrier have experienced a notable surge, recording a 650%
increase during trading at the PSX. The confidence of investors in PIA's reform
process has been cited as a key factor driving this surge in share value.
With a current share value of PKR 32, Pakistan International
Airlines has emerged as the 70th largest shareholder in Pakistan, indicating a
positive outlook for the airline's future.
Source: https://www.indianarrative.com/