The Privatization Commission Board of Directors is scheduled to meet today to discuss the privatization of Pakistan International Airlines (PIA).
Privatization of PIA
According to sources, the meeting will focus on critical issues such as the examination of a preliminary technical report on PIA’s assets and the probable early approval of the hiring of a financial advisor for the upcoming deal.
According to officials from the Privatization Commission, eight international corporations have already submitted offers to offer their services in connection with the privatization of national flag carrier.
Debt on National Flag Carrier
However, the national carrier’s severe financial woes are highlighted by reports showing that PIA’s cumulative losses have reached a whopping Rs. 711 billion, with monthly losses equal to Rs. 13 billion, according to officials.
Furthermore, the terrible financial situation gets worse by the fact that the national flag carrier lost Rs. 86 billion in the previous year alone.
However, officials from the Privatization Commission have expressed extreme alarm, claiming that additional losses surpassing Rs. 150 billion are on the horizon for the current fiscal year.
They further stated that the national flag carrier is in debt to banks, owing a large sum of Rs. 430 billion, and that in order to alleviate the turbulence, the final audit accounts of PIA are planned to be completed by December 31.
Concurrently, work is being done to prepare a comprehensive report detailing the airline’s assets and liabilities.
Notably, the upcoming privatization bid for the national flag carrier is scheduled for early next year.
Moreover, authorities are considering selling 51 percent of PIA’s shares, including management control, as part of the privatization plan.
To read our blog on “For PIA privatization, 8 Int. companies shows their interest,” click here.