PIA likely to be bifurcated under privatisation plan

KARACHI: Prior to the privatisation of the Pakistan International Airline (PIA), authorities have initiated the process to bifurcate the national airline, ARY News reported on Thursday.

According to the details, in order to restructure the balance sheet the financial advisor has been sought to provide necessary services before PIA’s privatisation.

Sources close to the development revealed that the various proposals will be discussed with the financial advisor for the financial restructuring as well as the division of the national flag carrier into two separate companies or placing it under a holding company.

The assets belongs to the PIA, including property, debts, aircrafts, and employees, will be transferred to the new company and PIA will be presented to the investor as free from debts organization for privatisation.

Sources reported that the financial liability of debts is Rs 74.2 billion against the assets of Rs 14.7 billion belong to PIA. The most of the loan was taken to cover losses of 2003, which burdened the national airline with annual payment of Rs 15 billion.

The operations of the Pakistan International Airline (PIA) are very important to continue in order to successfully complete the privatisation process.

Earlier to this, the caretaker Minister for Privatisation Fawad Hasan Fawad chaired a meeting with different stakeholders regarding the restructuring of Pakistan International Airlines (PIA) leading to a privatization process.

During the meeting headed by Minister for Privatisation Fawad Hasan Fawad “clear timelines regarding the process were agreed with a view to meet the target set by the Prime Minister and the Cabinet.”