The federal government plans to privatise Pakistan International Airlines (PIA) before signing a new agreement with the International Monetary Fund (IMF), according to Privatisation Commission sources.
Sources confirmed that the decision to privatise PIA is being expedited and will comply with all IMF terms and conditions.
They stated that the PIA sale is a prerequisite for a new IMF loan programme and will be completed before authorities seek a larger bailout from the Washington-based lender.
According to sources, a Letter of Intent (LoI) for the privatisation of PIA could be issued in June, paving the way for completion by July 2024. PIA currently owes around Rs. 700 billion. The airline owes up to Rs. 270 billion to commercial banks.
According to sources, approximately 350 government entities, including PIA, the Federal Board of Revenue (FBR), and Pakistan State Oil (PSO), are facing insolvency.
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