Govt chalks out framework to revive debt-ridden PIA
ISLAMABAD: The federal government has drawn up a comprehensive plan to run the debt-ridden Pakistan International Airlines (PIA) in a public-private partnership with foreign capital and transform the national carrier.
As part of PIA’s stimulus plan, a new holding company will be registered with the Securities and Exchange Commission of Pakistan (SECP) and all assets and liabilities of the flag carrier will be transferred to it. PIA will be integrated into the holding company as a debt-free subsidiary.
According to the framework, 40 percent of the shares will be sold on the international market to operate the national airline in a public-private partnership mode, and the management will also be outsourced. It was also decided to employ a foreign consultant to transparently conclude the restructuring process.
The framework created by the government will be completed in stages until 2025.
In the first phase, the airline is isolated from debt and losses by registering the holding company with the SECP. In the second phase, the national airline will be transformed and managed according to a public-private partnership. Your shares are also being sold.
According to the documents, PIA’s total losses and debt reached 742 billion rupees, of which 350 billion rupees were secured loans, while 400 billion rupees were taken against the airline’s assets.
According to the documents, PIA’s total losses and debt reached 742 billion rupees, of which 350 billion rupees were secured loans, while 400 billion rupees were taken against the airline’s assets. On the contrary, PIA’s assets stand at Rs 130 billion and the national carrier’s losses could touch Rs 850 billion by the end of this year. According to the documents, PIA has incurred a loss of Rs 110 billion in the one and a half years of the cur.
Published in EDP BLOGS on August 14,2023.
