SECP completes 'complex task' of PIA's restructuring as privatization continues

ISLAMABAD - The Securities and Exchange Commission of Pakistan (SECP) has approved the restructuring of the Pakistan International Airlines Corporation Limited (PIACL).

The approval was confirmed by the Privatisation Commission on Sunday and marks a significant development in selling off the national carrier that has been dealing a severe blow to the national exchequer. 

A statement released by the Privatisation Commission read that the legal separation of the PIACL for its restructuring was an extremely "complex task" but now it had been finalized.

As per the official statement, SECP has given the nod to the transfer of non-core assets and liabilities of the PIACL to the PIA Holding Company Limited.

The statement highlighted that this restructuring was an important milestone in the joint efforts of the Privatisation Commission (PC), Finance Division, aviation ministry, and national carrier for taking forward the privatization plan.

Earlier, the federal government decided to extend the deadline for submission of an Expression of Interest (EOI) for the privatization of the state-owned carrier. Federal Minister for Privatisation, Abdul Aleem Khan confirmed the development and stated that the deadline has been extended by 15 days and the fresh deadline is now May 18th.

The announcement comes after 10 local and international companies expressed interest in the privatization of the PIA; it was also affirmed that there will be no further extension in the submission of EOI for Pakistan International Airlines (PIA).

Highlighting the importance of PIA, the minister noted that the combined share of all the airlines is less than that of the national carrier. 

The minister also assured that PIA will become profitable once new planes are added to the fleet, adding that the privatization process of PIA will be 100 percent transparent and open to the media.

Khan also assured that the PIA employees will not face any issues with the privatization of the national carrier. It is to be highlighted that the government had announced to privatize the loss-making PIA by June this year as Prime Minister Shehbaz Sharif had tasked the relevant officers to complete the formalities accordingly.