PIA to be Privatised Next Month: October 1st 2024
Privatization of PIA Delayed: New Target Set for October 1, 2024
The new tentative date that has been announced by the Privatization Committee for the privatization of the national flag carrier, Pakistan International Airlines, will be on or by October 1, 2024.
Read More: Cabinet Approved Restructuring of PIA
This was announced in a meeting of the Standing Committee on Privatization, which was held under MNA Dr. Farooq Sattar.
Reasons for the Delay
Incomplete Due Diligence: Shortlisted companies for the privatization have not completed their respective due diligence process to date.
The key significance of this due diligence lay in the fact that without a clear idea of PIA’s financial health and operating performance, the parties.
- Accounting Delays: The delay in finalizing the accounts of PIA is also a delay producer. To ascertain the value of the airline that can attract any bidder, finalizing facts and figures of financial information is crucial.
- Reopening European Routes: Potential firms have indicated a desire for PIA to reopen its previous suspended European routes. This will give additional profit and will attract the airlines for investment.
Financial Issues :
The committee further pointed out that PIA has been suffering from critical financial crisis. Over the last eight years, the cumulative loss incurred by the airlines has reached an incredulous Rs 500 billion, out of which a mere 80 billion lost in the last financial year.
Besides, PIA bores a debt burden of Rs 825 billion.
The Privatization Process:
Following up, the privatization process has pre-qualified/supported six companies/consortiums for the process:
- Air Blue
- Arif Habib Corporation
- Blue World City
- Fly Jinnah
- Pak Ethanol Consortium
- YB Holdings Consortium
The government is hopeful of a successful privatization which will help PIA get rid of its financial problems and operate in an efficient way surgically.
International Investment:
It was mentioned by one committee member that international interest was missing in the privatization process.
He mentioned that the SIFC would have to be dissolved in case the international investment does not turn up.
Way Forward: PIA to be Privatised Next Month: October 1st 2024
The November deadline now passed, the Pakistani government still wants to find a new owner for PIA. The finalization of the deal now targets October 1, 2024.
Overcoming the delay or perhaps reopening the routes to Europe may be a measure to receive strong bids and close with success the privatization process.
Note: The information above might not be accepted 100%. Please verify from your own sources. We will not be responsible for any kind of loss due to our content.
For more news, please visit Munafa Marketing.
