Thursday, September 28, 2023

Privatisation Commission stops PIA from leasing aircraft

PIA, Privatisation Commission, aircraft leasing, PIA privatisation

KARACHI: The Privatisation Commission has stopped the Pakistan International Airlines (PIA) management from leasing a new aircraft, citing sources, ARY News reported on Thursday.

The commission has expedited its efforts to privatise the national flag carrier Pakistan International Airlines (PIA) and stopped the airline’s management from leasing another aircraft.

Sources told ARY News that the Privatisation Commission stopped the PIA management from signing an agreement to lease a new aircraft. It was learnt that the privatisation process of PIA would be completed by February.

The airline will not sign any long-term agreement by March 2024 due to the ongoing privatisation process.

Yesterday, the privatization plan of the loss-making Pakistan International Airlines (PIA) was revealed.

Related: PIA-owned Scribe Hotel listed for privatisation: sources

According to sources, the plan to privatise the national airline and power distribution companies and the restoration plan of Pakistan steel mills has been finalised.

Sources said that the appointment of a Financial Advisor for the privitisation of PIA has also begun. The affiliated institution with the national airline will not be privatised however the plan to resolve issues related to PIA debt, government guarantees are finalised sources added.

The privatisation commission sources revealed that Pakistan steel mill cannot be privatised in current circumstances meanwhile the mill’s production and capabilities will be increased to attract investors.

It is pertinent to mention here that the work on the restructuring plan of Pakistan International Airlines for privatization has been expedited.

As per details, the PIA administration sought applications from legal and corporate firms for the restructuring plan of the national flag carrier.

The Department of Contract Management has been directed to forward the applications by October 6.

The assets belonging to the national airline, including property, debts, aircraft, and employees, will be transferred to the new company and PIA will be presented to the investor as free from debt organization for privatization.



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