The Pakistani government has announced plans to sell a 75% stake in Pakistan International Airlines (PIA). This decision is part of a broader strategy to revitalize the struggling national carrier and attract substantial investment.
PIA has faced financial difficulties for nearly two decades, struggling with operational inefficiencies and mounting debts. The government’s decision to privatize a majority stake aims to bring in fresh capital and expertise to turn around the airline’s fortunes. The successful bidder will be required to invest at least $500 million over three years to recapitalize and modernize the airline.
The privatization process has been carefully structured to ensure transparency and attract credible investors. The Competition Commission of Pakistan (CCP) has already approved a Scheme of Arrangements for the acquisition of PIA’s shareholding by a newly formed entity, PIA Holding Company Limited (Holdco). This entity will take over specified assets, liabilities, and subsidiaries of PIA, ensuring a smooth transition.
Despite selling a majority stake, the government plans to retain a portion of its shareholding in PIA. This strategy is designed to allow the government to benefit from any future increase in the airline’s value post-privatization.
By attracting significant investment and expertise, the government hopes to transform PIA into a profitable and competitive airline. This move is also expected to enhance the overall efficiency and service quality of the national carrier, benefiting passengers and stakeholders alike.
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