Another consultant will be hired for the privatization process.
The drama continues...
Full details: https://epaper.dawn.com/DetailNews.php? ... 24_012_004
Bids Invited for PIA Privatisation
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arshad.altaf
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arshad.altaf
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Re: Bids Invited for PIA Privatisation
Finance ministry blamed for failed PIA bid
ISLAMABAD:
Privatisation Minister Abdul Aleem Khan said on Monday that the lack of cooperation by the Ministry of Finance was the reason behind the failed attempt to sell Pakistan International Airlines (PIA), which did not accept the bidders' rightful demands.
He also blamed the caretaker government for finalising a faulty privatisation transaction structure, where it left behind a Rs45 billion negative equity on the PIA balance sheet despite taking off liabilities of Rs623 billion.
In a statement before the Senate Standing Committee on Privatisation, Aleem Khan said that even the Gulf countries would not buy the "dirt" of PIA as its balance sheet had to be cleaned from the negative equity before selling to either a foreign country or to a private party.
The bidders had demanded exemption from 18% sales tax on the lease of aircraft and writing off additional liabilities of Rs45 billion but the departments did not cooperate and the government did not listen, he said.
PML-N Senator Tallal Badar Chaudhry chaired the committee meeting. The Federal Board of Revenue (FBR) was inflexible and "we could not write off Rs45 billion worth of liabilities without the consent of the finance ministry," said Aleem Khan.
https://tribune.com.pk/story/2510483/fi ... ed-pia-bid
ISLAMABAD:
Privatisation Minister Abdul Aleem Khan said on Monday that the lack of cooperation by the Ministry of Finance was the reason behind the failed attempt to sell Pakistan International Airlines (PIA), which did not accept the bidders' rightful demands.
He also blamed the caretaker government for finalising a faulty privatisation transaction structure, where it left behind a Rs45 billion negative equity on the PIA balance sheet despite taking off liabilities of Rs623 billion.
In a statement before the Senate Standing Committee on Privatisation, Aleem Khan said that even the Gulf countries would not buy the "dirt" of PIA as its balance sheet had to be cleaned from the negative equity before selling to either a foreign country or to a private party.
The bidders had demanded exemption from 18% sales tax on the lease of aircraft and writing off additional liabilities of Rs45 billion but the departments did not cooperate and the government did not listen, he said.
PML-N Senator Tallal Badar Chaudhry chaired the committee meeting. The Federal Board of Revenue (FBR) was inflexible and "we could not write off Rs45 billion worth of liabilities without the consent of the finance ministry," said Aleem Khan.
https://tribune.com.pk/story/2510483/fi ... ed-pia-bid