PAF to Acquire PIA's Precision Engineering Complex

[Abbas Ali]

Pakistan International Airlines (PIA) Precision Engineering Complex (PEC) located in Karachi to be sold to Pakistan Air Force (PAF) for PKR 2.5 billion cash.

PAF will acquire PEC at a total price of PKR 6.5 billion. PAF will pay PKR 2.5 billion in cash within five years and will also assume PKR 3 billion in liabilities of pensions and provident fund of the already retired 259 employees of PEC for the next 10 years.

Another PKR 1.1 billion in the estimated pension and provident fund liabilities of the existing 251 employees will also be the responsibility of PAF.

https://tribune.com.pk/story/2514909/pa ... -for-rs65b

[Abbas Ali]

Pakistan President Farooq Ahmed Khan Leghari visiting PIA Precision Engineering Complex (PEC) at Karachi Airport in 1994.

PIA Precision Engineering Complex (PEC)

PIA Precision Engineering Complex (PEC) - Karachi was initially established in Karachi to manufacture and overhaul miscellaneous aircraft items for PIA. It grew and expanded to perform manufacturing subcontracts for various international aerospace companies.


Pakistan Prime Minister Benazir Bhutto inspecting PIA Precision Engineering Complex (PEC) stall in Islamabad in 1994.

PEC products' customers included Boeing, General Electric (GE), Airbus, Hispano Suiza, Saab and Snecma. Components produced included undercarriage webs and wing components for Boeing, metallic parts used for attaching overhead stowage compartments with the interiors of Airbus A320 family aircraft and oil seals for Snecma.

PEC also produced galley equipment for PIA such as meal trolleys.

Abbas

[Hassan777]

Wasn’t it already operating under PAC Kamra? pretty sure I heard that news sometime ago maybe on this forum.

[TomcatTask]

Interesting, perhaps this could also be linked to the overall privatization deal for PIA? This seems to be a good cash injection for them at least.

[Amaad Lone]

Interesting how its liabilities are being mentioned in sale price 2.5 billion plus 4 billion equal to 6.5 billion

But when PIA bidding came in it was said 10 billion no mention of 45 billion pension liabilities 20 billion FBR liabilities 200 billion bank loans. So when someone offers 10 billion for PIA they are actually paying 275 billion.

Plus payment over 5 years is that a joke???

Pension of armed forces is paid in civilian budget so technically PAF is not going to pay for pension federal government will.

[arshad.altaf]

Regardless of what will happen, judging from its history, the Precision Engineering Complex played an important role in national and international aviation.

Another aviation gem of the nation bites the dust.

Regards,
Arshad

[ammad]

The pension of the armed forces is paid in the civilian budget, so technically, the PAF will not pay for the pension the federal government will.

That's spot on. There are 99% chance that 2.5 billion PKR will not be paid in 5 years, and the facility will be occupied for free by PAF.