PIA privatisation bids invited; international investors assured

KARACHI: Pakistan State Oil (PSO) has also given the green light for Pakistan International Airlines’ (PIA) privatisation, clearing the path for the bidding process to commence on June 3, 2024.

This development follows the government’s call to kickstart the privatisation of the national carrier, aimed at addressing financial obligations. One of the most notable of those obligations is PIA’s Rs 27 billion debt owed to PSO for fuel supplies.

Stock market opens at 66,796 points after yesterday’s fluctuations

The bidding has been scheduled for June 3, 2024, and to attract international investors, reassurances have been extended to them regarding Pakistan’s political steadiness and its conducive business environment.

These reassurances have been underscored by recent electoral processes and the formation of a new administration, alongside positive economic advancements through the continued implementation of the International Monetary Fund (IMF) program.

A cabinet committee, chaired by the Minister for Defence and Aviation, has been established to supervise the privatisation of PIA and the delegation of airport management responsibilities.

This committee comprises prominent figures including the Ministers for Privatisation and Foreign Affairs, the Deputy Chairman of the Planning Commission, as well as secretaries from the Aviation and Privatisation Commissions.

Gold prices come down slightly

Earlier, while progressing towards the national carrier’s privatisation initiative, the federal cabinet endorsed the establishment of a new holding entity, PIA Holding Company Limited (PIA HoldCo Ltd), on February 6.

This entity will absorb specified assets, liabilities, and subsidiaries from PIA Corporation Ltd (PIACL), operating as a public limited company under federal government ownership.

The authorised capital for PIA HoldCo stands at Rs 53.5 billion, with an initial paid-up capital of Rs 10,000 only.

The initial subscribers and founding directors of PIA HoldCo Ltd will include secretaries from the Aviation, Finance, and Privatisation Divisions, with the CEO of PIACL also serving as the CEO of the new holding company until a permanent appointment is finalised.

Punjab police’s crackdown on kite flying continues

Regarding the funds generated from the privatisation process, insiders suggest that the funds will be directed towards revitalising the national airline. Upon PIA’s transformation into a financially viable enterprise, the profits will be utilised for debt settlement.

Furthermore, the proposed agreement includes plans for issuing sukuk, Islamic, and conventional bonds to the eight commercial banks engaged in the transaction.