PIA privatization plan receives Board of Directors’ nod
KARACHI – Pakistan is taking steps for privatisation of state-owned Pakistan International Airlines (PIA), which accumulated hundreds of billions of rupee in losses and arrears.
The recent board of directors meeting of national air carrier approved the privatization plan, prepared by Ernst & Young, includes proposals for the future of PIA’s employees, such as a voluntary retirement scheme.
The government is taking measures on demand of International Monetary Fund IMF to privatize state-owned enterprises, including PIA, to stop bleeding of state owned enterprise.
PIA board was recently reconstituted, and the federal cabinet approved its decisions regarding the company. Sharif led government, facing economic challenges, agreed to overhaul state-owned enterprises and authorities are close to complete privatization process, which involves selling a 51pc stake with full management control.
PIA’s liabilities and losses are significant, with plans to separate debts into a separate entity before selling the stake.
