PIA to be divide into two firms in privatisation plan

Karachi: The government has started the process of splitting the national airline into two separate companies before the Pakistan International Airline (PIA) is privatized on Thursday.

Details indicate that before PIA was privatized, the financial advisor was sought out to give the essential services in order to restructure the balance sheet.

According to sources familiar with the situation, the financial advisor will address the various ideas with regard to the financial restructuring as well as the splitting of the national flag carrier into two distinct companies or putting it under a holding company.

The PIA will transfer its property, debts, aircraft, and staff assets to the new firm and present itself to potential investors as a debt-free enterprise ready for privatization.

As per details, PIA has assets worth Rs 14.7 billion and a financial liability of Rs 74.2 billion due to loans.

The majority of the loan was borrowed to pay off 2003 losses, which forced the national airline to make Rs 15 billion in annual payments.

To effectively finish the privatization process, it is crucial that the Pakistan International Airlines (PIA) operations continue.

Earlier to this, the caretaker Minister for Privatisation Fawad Hasan Fawad chaired a meeting with different stakeholders regarding the restructuring of Pakistan International Airlines (PIA) leading to a privatization process.

During the meeting headed by Minister for Privatisation Fawad Hasan Fawad “clear timelines regarding the process were agreed with a view to meet the target set by the Prime Minister and the Cabinet.”