Today, the Board of Directors at the Privatization Commission is scheduled to meet to discuss the potential privatization of Pakistan International Airlines (PIA).
Insiders indicate that the meeting aims to cover crucial aspects, including a preliminary technical report review on PIA’s assets and the possible early approval of a financial advisor appointment for the impending transaction.
In related updates, officials from the Privatization Commission disclosed that eight international companies have submitted proposals for the privatization of PIA. The national carrier faces substantial financial challenges, with total losses reaching a staggering Rs. 711 billion and monthly losses at Rs. 13 billion. PIA reported losses of Rs. 86 billion in the previous year alone. The Commission expresses deep concern, highlighting the potential for additional losses exceeding Rs. 150 billion in the current fiscal year.
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The airline is burdened with substantial debt, owing Rs. 430 billion to banks. To address the financial turmoil, the final audit accounts of PIA are scheduled for completion by December 31. Simultaneously, efforts are underway to prepare a comprehensive report outlining the airline’s assets and liabilities.
The upcoming privatization bid for PIA is expected to occur early next year, with authorities considering the sale of 51 percent of PIA’s shares, including management control. This move is seen as a significant step to address the financial challenges and ensure the sustainability of the national carrier.
