The Privatization Commission Board of Directors is set to meet today to deliberate on the issue of privatizing Pakistan International Airlines (PIA).
Sources told ProPakistani the meeting is expected to address key aspects, including the review of a preliminary technical report on PIA’s assets and the potential early approval of the appointment of a financial advisor for the impending transaction.
Officials from the Privatization Commission revealed that eight international companies have already submitted proposals to offer their services for the privatization of PIA. The staggering financial challenges faced by the national carrier are underscored by reports indicating that PIA’s total losses have reached a staggering Rs. 711 billion, with monthly losses amounting to Rs. 13 billion, the officials added.
The dire financial situation is further highlighted by the fact that PIA recorded losses of Rs. 86 billion in the previous year alone. Privatization Commission officials have expressed deep concern, stating that there is a looming threat of additional losses exceeding Rs. 150 billion in the current fiscal year.
They added that PIA finds itself indebted to banks, owing a substantial sum of Rs. 430 billion, and to address the turmoil, the final audit accounts of PIA are scheduled to be completed by December 31. Simultaneously, work on preparing a comprehensive report detailing the airline’s assets and liabilities is underway.
Notably, the upcoming privatization bid for PIA is anticipated to take place early next year. As part of the privatization plan, authorities are contemplating the sale of 51 percent of PIA’s shares, inclusive of management control.