Committee endorses proposed divestment of government's majority shareholding in PIA
The Cabinet Committee on Privatisation (CCoP) on
Tuesday approved the Rs135 billion offer submitted by an Arif Habib Group–led consortium for
the acquisition of a 75 per cent stake in Pakistan International Airlines and
referred the deal to the federal cabinet for final approval.
Chaired by Deputy Prime Minister and Foreign
Minister Senator Mohammad
Ishaq Dar, the committee reviewed the bidding process and endorsed the
proposed divestment of the government’s majority shareholding in the national
flag carrier, according to an official statement.
The Arif Habib Group–led consortium emerged as
the highest bidder last week, offering a price around 35 per cent higher than
the government’s reference valuation. In addition to the purchase price, the
consortium has committed to invest Rs80 billion in PIA over the next five
years.
Read More Arif Habib consortium plans to expand PIA fleet to 64 aircraft, extend operations
The bidding for the 75 per cent stake in Pakistan International Airlines Corporation
Limited was conducted by the Privatisation Commission at a local hotel in
Islamabad, with Adviser to the Prime Minister on Privatisation Muhammad Ali
presiding over the session.
During the meeting, the secretary of the
Ministry of Privatisation briefed the committee on the proposed timeline and
next steps for the privatization of Pakistan International Airline Holding
Company Limited.
Senator Ishaq Dar instructed all relevant
ministries and departments to complete the remaining formalities swiftly to
ensure the early conclusion of the transaction, expressing optimism that the
process would help restore PIA’s operational performance.
The meeting was attended by the minister for
power, advisers to the prime minister on privatisation and industries and
production, special assistants to the prime minister Tariq Bajwa and Bilal
Kiyani, federal secretaries from the cabinet, privatisation, defence, law,
power and industries divisions, as well as senior officials of the
Privatisation Commission.
Read More Privatization of PIA completed with 75% stake sold to Arif Habib consortium
Separately, the Pakistan International
Airlines Retired Employees Association welcomed the government’s assurances
regarding the continuation of pensions, medical facilities, concessional travel
and other benefits after privatisation.
These
assurances were conveyed during the association’s 16th annual meeting, chaired
by Syed Tahir Hassan and attended by a large number of retired PIA employees.
According to a press release cited by APP, the association thanked the prime
minister, Privatisation Commission Chairman Muhammad Ali, PIAHCL Chairman Tariq
Bajwa and other officials for safeguarding the interests of retired PIA staff,
calling the move a positive step for their welfare.
Source:
Profit Pakistan