KARACHI: Good news for Pakistan’s economy as the liabilities, debt and arrears of Pakistan International Airline (PIA) have been cleared, ARY News reported.
As per details, all financial losses and debts of the National Airline have been cleared as it has been shifted to the withholding company before the privatization. Over Rs650 billion of the Rs825 billion PIA debt will be transferred to the holding company, leaving a clean PIA to be sold to investors.
Banks will have sovereign guarantees and exclusive rights to all present and future current and fixed assets of New Hold Company, excluding any interest or charge on Roosevelt Hotel.
The officials stated that Pakistan Stock Exchange has been notified about the clearance of PIA’s balance sheet.
After the recent development, PIA has become an attractive investment opportunity for major players in the aviation sector.
PIA also has 170 weekly flight routes spanning across 20 countries with 1.5 lac passengers traveling to Saudi Arabia via PIA, officials stated.
Yesterday, bids for the privatisation of Pakistan International Airlines (PIA) were sought from the buyers by May 3.
The government of Pakistan only wants to privatise the aviation department of the PIA and is interested in selling 51pc shares of the national flag carrier, while 49pc shares’ ownership will remain with the government.
The administrative control of PIA will also remain with the company buying the 51pc shares, the officials said.
Read more: PIA privatization: Three Gulf countries show interest in buying national carrier
It is pertinent to mention here as many as three Gulf countries including the United Arab Emirates, Saudi Arabia and Qatar have shown interest in buying the cash-strapped Pakistan International Airlines (PIA) as the government expedites its privatisation plan, sources said.
Sources privy to the matter said that the companies from the three countries have approached the Pakistan government to negotiate a deal for the PIA.
Pakistan has also given a briefing to the officials of the three Gulf countries regarding the national flag carrier.
According to sources, Pakistan International Airlines would be sold to the highest bidder following the conclusion of the Pakistan International Airlines privatisation plan.
 have been cleared.){kind=link}