Federal govt approves PIA privatization

The federal government has decided to privatize Pakistan International Airlines (PIA), approving the sale of 51% to 100% of its shares, ARY News reported on Tuesday.

The decision was made during a meeting of the Cabinet Committee on Privatization, chaired by Deputy Prime Minister Ishaq Dar in Islamabad, here today.

According to Ishaq Dar, the privatization of PIA will reduce the financial burden on the national treasury. He emphasized that the government aims to unlock the full potential of the airline.

Following privatization, administrative control of PIA will also be transferred.

The deputy prime minister stated that the decision has been taken in the national interest to ensure the airline’s long-term sustainability.

Read more: Transaction structure for PIA privatization approved

On March 19, the Privatization Commission Board has approved the transaction structure for the second attempt to privatize Pakistan International Airlines Corporation Limited.

This decision was made during a meeting of the Privatization Commission Board, chaired by Muhammad Ali, the adviser to the prime minister on privatization.

The plan involves divesting 51% to 100% of PIACL’s share capital, along with management control.

The Ministry of Privatization in a statement said that “The board recommended to CCOP (Competition Commission of Pakistan) the transaction structure proposed for the 2nd attempt of PIACL privatization based on divestment of 51 percent to 100 percent share capital of PIACL together with the management control of PIACL”.

According to sources the Arif Habib Group, Taba Group, and YB Holdings are taking key interest in the privatization process of PIA.

Key meetings have reportedly taken place in Islamabad among representatives of these groups to discuss the potential acquisition of PIA.