First final closing of PIA's privatization process completed
The federal government has formally
transferred management control of Pakistan
International Airlines Corporation Limited (PIACL) to the Arif Habib Corporation-led
consortium, completing the first financial closing of the national carrier's
privatisation process.
The Privatisation Commission
announced the transfer after all conditions under the Share Purchase and
Subscription Agreement (SPSA) were fulfilled, marking a major milestone in the
airline's privatisation.
The newly constituted board
appointed retired Lieutenant General Anwar Ali Haider, Managing Director of
Fauji Foundation, as chairman of the privatised airline.
The commission said all 40
regulatory, commercial and contractual conditions were completed since the SPSA
was signed on January 29 this year. These included domestic and international
regulatory approvals, aircraft financing arrangements, taxation restructuring,
governance reforms, commercial consents and aviation policy changes, while
ensuring uninterrupted airline operations and protection of employees'
interests.
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Under the transaction, the investor
consortium has committed a total investment of Rs180 billion, including Rs55
billion to the government for the acquisition of PIA and Rs125 billion as fresh
investment to modernise the airline, expand its fleet and route network, and
improve operational performance and customer services.
As part of the first financial
closing, the consortium has paid Rs10 billion to the government and injected
Rs80 billion into PIACL to strengthen its financial position.
The second financial closing is
scheduled within 12 months, during which the consortium will invest an
additional Rs45 billion. It has also expressed its intention to acquire the
remaining 25 percent shares of PIACL for another Rs45 billion under the
agreement.
Adviser to the Prime Minister on
Privatisation Muhammad Ali said the transaction demonstrates Pakistan's ability
to complete complex strategic deals through a transparent and competitive
process, reinforcing the government's commitment to economic reforms, fiscal
responsibility and greater private-sector participation.
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of PIA completed with 75% stake sold to Arif Habib consortium
The new chairman of PIACL, retired
Lieutenant General Anwar Ali Haider, said the airline would preserve its legacy
while working to build a modern aviation experience and regain the trust of
passengers under its new ownership.
Source:
Dawn