The Pakistan government is contemplating the sale of a majority stake in Pakistan International Airlines (PIA), as indicated by a government official.
Bilal Azhar Kayani, the Coordinator to the Prime Minister on Economy and Energy, told media that the Privatization Commission would determine the extent of shares to be divested as the PIA privatization process reaches its conclusion.
Kayani disclosed that the government is exploring the sale of anywhere between 51% to 100% of the shares of the national flag carrier, with administrative control to be transferred to the entity acquiring the majority stake.
He stated that progress on the PIA privatization is proceeding well, with numerous countries and global corporations expressing interest in acquiring PIA.
Regarding retired employees’ matters, Kayani mentioned their transition to the PIA Holding Company, affirming that pension disbursement would not be affected by this move.
Additionally, the federal government is actively addressing issues concerning current employees and intends to formulate a policy in due course.
Earlier, the government settled PIA’s liabilities, debts, and arrears by transferring all financial losses and debts to the holding company before privatization. The Pakistan Stock Exchange (PSX) has been duly notified about this clearance of PIA’s balance sheet.
Bids for the privatization of Pakistan International Airlines have been solicited from potential buyers, with the deadline set for May 3.
Following reforms within PIA, its shares witnessed a remarkable surge of over 650% in trading at the PSX. Over recent weeks, PIA shares have risen from Rs4.50 to Rs32, with the most recent valuation reaching Rs32 from Rs27.
Market experts attribute this upward trend to investor confidence following the implementation of reforms within PIA. With a share value of Rs32, Pakistan International Airlines has become the 70th largest shareholder in Pakistan.
