Transaction structure for PIA privatization approved

ISLAMABAD: The Privatization Commission Board has approved the transaction structure for the second attempt to privatize Pakistan International Airlines Corporation Limited, ARY News reported citing official statement.

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”.

Additionally, the Privatization Commission Board discussed the privatization of Roosevelt Hotel in New York, and decided to seek a briefing from a financial advisor before moving forward with the process.

The process for Pakistan International Airlines (PIA) privatization has accelerated once again, with significant interest shown by prominent groups for the acquisition of PIA, ARY News reported on Friday citing sources

According to sources interested groups’ names include the Arif Habib Group, Taba Group, and YB Holdings. Key meetings have reportedly taken place in Islamabad among representatives of these groups to discuss the potential acquisition of PIA.

Sources indicate that, since the process for PIA privatization has gained momentum, the interested groups have expressed their willingness to proceed with the acquisition of Pakistan’s national airlines, provided their conditions are met.

Among these conditions is the demand that the government assumes responsibility for PIA’s outstanding liabilities, including billions owed to the Federal Board of Revenue (FBR), Pakistan State Oil (PSO), and the aviation sector.

Additionally, it has been reported that the International Monetary Fund (IMF) has set a target for PIA privatization to be completed by July.

This development comes as part of broader economic reforms and restructuring efforts aimed at improving the financial health of the national carrier.