Splitting of PIA Into Two Entities Approved

[Abbas Ali]

On February 2, Special Investment Facilitation Council (SIFC) approved bifurcation of Pakistan International Airlines (PIA) into two entities.

PIA's outstanding liabilities of PKR 830 billion would be parked in the upcoming Holding Company.

https://e.thenews.com.pk/detail?id=277905

[Abbas Ali]

Caretaker federal government cabinet meeting on February 6 expected to approve PIA privatization.

Abbas

[Abbas Ali]

SAMAA News

Federal caretaker government cabinet meeting on February 6 expected to approve legal framework for bifurcation of PIA into two entities.

PIA's outstanding liabilities of PKR 830 billion would be parked in the upcoming holding company.

Abbas

[Abbas Ali]

On February 6, caretaker federal government cabinet meeting approved financial restructuring of PIA and airline's bifurcation into two entities "Top-Co" and "Hold-Co".

* PIA's core business including flight operations, engineering, cargo, flight kitchen, ground handling, training to become part of Top-Co.

* PIA's Precision Engineering Complex (PEC), PIA Investments Limited (PIAIL) and others subsidiaries and properties will be incorporated in Hold-Co.

The step aims to attract investors for PIA's privatization.

PIA has been reporting financial losses since past several years, the cabinet meeting was informed.

Cabinet sub-committee on Privatization has been directed to deal with matters related to settlement of government-owned enterprises with PIA as soon as possible.

Abbas

[Karachi Aviator]

Seems like they have almost readied PIA for privatisation but WHERE IS THE BUYER?? Any party interested in taking over?

[Amaad Lone]

Ninty percent of PIA losses has been EXCHANGE RATE LOSSES and FINANCIAL INTEREST COST.

Once currency stabilizes around 280 and debt is written off, PIA automatically becomes a profitable airline.

Once PIA restarts Europe, UK and hopefully North America, and revenue raises and crosses 2 billion dollars, than PIA can easily become very attractive to foreign buyers.

[raihans]

Perhaps if PIA is generating operational profit regularly otherwise the top-co will be again looking at tax payers injections to survive