PIA inches closer to privatisation

ISLAMABAD: The Competition Commission of Pakistan (CCP) gave the green light to the Scheme of Arrangement (SoA) for the privatisation process of Pakistan International Airlines Corporation Limited (PIACL).

This approval signals a pivotal step towards the PIACL’s restructuring process and approval from the SECP once finalized, this will formalise the transfer of non-core assets and liabilities to the newly-formed PIA Holding Company Limited, setting the stage for a debt-light PIACL.

The privatisation of the PIACL has garnered substantial interest from major investors, including airlines and business conglomerates, who have submitted their expressions of interest for this transaction. The Privatisation Commission (PC) has extended the deadline for submitting the Statement of Qualification (SOQ) till May 17, 2024, upon request from the interested parties.

The decision aims to facilitate a competitive and fair bidding process, ultimately, leading to successful privatisation outcome.

Ten companies have reportedly shown their interest in acquiring the majority stakes in Pakistan International Airlines (PIA), it emerged Friday.

Sources told ARY News 10 companies including three domestic aviation companies have submitted their applications for tenders.

Fly Jinnah, AirSial, Arif Habib Group, Shujaat Azeem Group’s consortium, Tabba, Tariq Group and Sehgal groups have also shown interest in acquiring the majority of PIA shares, the sources said.

The last date of PIA privatisation was May 3 (today) which has now been extended to 18 with aim of providing such companies with ample time to finalise their proposals.