ISLAMABAD (PEN) : The Privatization Commission Board has approved the transaction structure for the second attempt at privatizing Pakistan International Airlines Corporation Limited (PIACL), according to an official statement. The approval came during a meeting chaired by Muhammad Ali, the Adviser to the Prime Minister on Privatization.
51% to 100% Share Divestment
The approved plan outlines the divestment of a significant portion of PIACL’s shares, ranging from 51% to 100%, along with management control. This marks a crucial step in the government’s efforts to privatize the national carrier.
A statement from the Ministry of Privatization confirmed that the board had recommended the transaction structure to the Competition Commission of Pakistan (CCOP). The proposed plan is designed to facilitate the privatization of PIACL by allowing private investors to take control of the airline’s management and operations.
Ongoing Interest from Potential Buyers
The privatization process for Pakistan International Airlines has gained considerable momentum in recent weeks, with major investor groups expressing interest in acquiring the struggling airline. According to sources, groups such as the Arif Habib Group, Taba Group, and YB Holdings have shown interest in the acquisition, and key meetings have been held to discuss the details of the potential deal.
The government has reportedly set conditions for the deal, including the assumption of responsibility for PIACL’s outstanding liabilities, which include significant debts owed to the Federal Board of Revenue (FBR), Pakistan State Oil (PSO), and the broader aviation sector.
IMF’s Target for Completion
In line with broader economic reforms, the International Monetary Fund (IMF) has set a target for the privatization of PIACL to be completed by July. This is part of a broader effort to restructure Pakistan’s national carrier and improve its financial health.
Roosevelt Hotel Privatization Discussed
In addition to the PIACL privatization, the Privatization Commission Board also discussed the future of the Roosevelt Hotel in New York. The board decided to consult with a financial advisor before moving forward with the hotel’s potential sale. The privatization of the Roosevelt Hotel is part of the government’s ongoing efforts to divest non-core assets to bolster its financial position.
As the process progresses, the government is expected to continue engaging with interested parties, with the goal of ensuring a smooth transition for PIACL and securing a viable future for the airline under private ownership.
The successful privatization of PIACL is seen as a critical milestone for Pakistan’s economic reform agenda, and stakeholders are closely monitoring the developments in the coming months.
