Privatization of PIA announced with 26 percent shares sale
PTCL Privatisation Model will be Implemented
Islamabad (Wednesday, January 8th, 2014) – Privatisation Commission Board on Wednesday approved the appointment of a financial advisor who would oversee sale of 26% shares of Pakistan International Airlines to a strategic investor without transferring its liabilities.
Process of Privatization, what Next?
The decision marks the beginning of the privatisation process of PIA and a total of 32 state-owned entities.
Following approval from the Board, the matter will now go to the Cabinet Committee on Privatisation.
The CCOP meeting is often considered a mere formality as all the issues are mainly decided in the PC Board.
PIA Liabilities will not be transferred
An official of the commission said the Board had decided to privatise 26% shares on the same model which was adopted for Pakistan Telecommunication Company Limited (PTCL).
Under this model, the government will not transfer the airline’s liabilities to the buyer.
Secretary Finance Dr Waqar Masood said that by last week, the accumulative losses of PIA had increased to Rs180 billion.
Selection of Financial dvisor
A brief statement from the commission said the board had green-lighted the process of selection of a financial advisor for the exercise. The advisor will be determining the base price for the shares.
Interest of PIA Employees to be Protected
The statement added that the Board resolved to protect employee interests in the process.