Federal govt okays PIA privatization

ISLAMABAD: The federal government on Tuesday decided to privatize Pakistan International Airlines (PIA), approving the sale of its 51 percent to 100 percent stake.

The decision was taken in a meeting of the Cabinet Committee on Privatization chaired by Deputy Prime Minister Ishaq Dar here today in Islamabad.

According to Ishaq Dar, the privatization of PIA will reduce the financial burden on the national exchequer. He stressed that the government’s aim is to unlock the full potential of the airline.

After privatization, the administrative control of PIA will also be transferred.

The Deputy Prime Minister said that the decision has been taken to ensure the long-term sustainability of the airline in the national interest.

On March 19, the Privatization Commission Board approved the transaction structure for the second attempt at privatization of Pakistan International Airlines Corporation Limited.

The decision was taken in a meeting of the Privatization Commission Board chaired by the Prime Minister’s Adviser on Privatization Muhammad Ali.

The plan involves investment of 51% to 100% stake in PIACL along with management control.

The Ministry of Privatization said in a statement that “the Board has proposed a transaction structure for the second attempt at privatization of PIACL based on investment of 51% to 100% stake in PIACL along with management control of PIACL.”

According to sources, Arif Habib Group, Tabba Group and YB Holdings are taking key interest in the privatization process of PIA.

According to reports, important meetings have been held between representatives of these groups in Islamabad to discuss the possible acquisition of PIA.