PIA Board approves privatisation and restructuring plan

WEB DESK: In a significant move aimed at revitalising its operations, the Board of Directors (BoD) of Pakistan International Airlines (PIA) has given the green light to the privatisation and restructuring plan of the national carrier.

The decision, disclosed in a notice to the Pakistan Stock Exchange (PSX) on Tuesday, marks a pivotal moment in the airline’s trajectory.

The announcement came following the 83rd meeting of the company’s Board of Directors held on March 25, 2024.

During this session, the BoD formally approved the Scheme of Arrangement (SOA) designed to restructure and privatise Pakistan International Airlines Corporation Limited, alongside its accompanying modalities.

The plan is slated for submission to the Securities and Exchange Commission of Pakistan (SECP) for further review and regulatory clearance.

According to the communication to the bourse, the company’s share price experienced a notable surge, hitting the upper limit and settling at Rs25.39 on Tuesday.

Remarkably, this upward trajectory had already commenced prior to the public disclosure of the notice, indicating a pre-existing investor optimism regarding the anticipated restructuring and privatisation initiatives.

The decision to pursue privatisation and restructuring underscores the company’s commitment to enhancing efficiency, competitiveness, and sustainability in the dynamic aviation landscape.

By aligning with strategic objectives and industry best practices, PIA aims to navigate challenges effectively while harnessing opportunities for growth and expansion.

As stakeholders await further developments and regulatory processes, the approval of the privatisation and restructuring plan sets the stage for a transformative phase in Pakistan International Airlines’ journey, signifying a concerted effort towards revitalising the national carrier’s operational framework and ensuring long-term viability in the global aviation arena.

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