Pakistan International Arlines (PIA) : News / Updates

[ghazi52]

PIA board approves privatisation plan amid IMF talks​

Commits to govt target of June 2024 for sell-off, aims to fetch $250-300m

Salman Siddiqui
March 27, 2024

design: mohsin alam


The board of directors of Pakistan International Airlines (PIA) has approved the government’s plan to privatise the national flag carrier ahead of the country securing a new International Monetary Fund (IMF) loan programme, estimating to fetch $250-300 million through the sell-off likely to a Middle Eastern country.

Following its reconstitution on Friday, March 22, the board of directors convened its first meeting on Monday and committed to the government’s timeline to privatise PIA by June 15, 2024.

Some meeting participants expressed confidence that PIA’s sell-off would occur before the country secures the next IMF loan package. Finance Minister Muhammad Aurangzeb is expected to formally approach the IMF for a new loan programme at the Fund’s annual meeting in mid-April 2024.

However, a source dispelled the impression that PIA privatisation is a prerequisite condition for the IMF’s next loan programme.

The PIA board formally approved the appointment of international financial advisor, Ernst & Young, for the privatisation transaction.

According to a source familiar with the developments surrounding the airline’s sell-off, the advisor’s briefing to the board projected that PIA’s privatisation may fetch $250-300 million for the government.

However, the actual value of PIA may differ once interested buyers conduct due diligence of the national carrier.

 

[RescueRanger]

PIA board approves privatisation plan amid IMF talks​

Commits to govt target of June 2024 for sell-off, aims to fetch $250-300m

Salman Siddiqui
March 27, 2024

design: mohsin alam


The board of directors of Pakistan International Airlines (PIA) has approved the government’s plan to privatise the national flag carrier ahead of the country securing a new International Monetary Fund (IMF) loan programme, estimating to fetch $250-300 million through the sell-off likely to a Middle Eastern country.

Following its reconstitution on Friday, March 22, the board of directors convened its first meeting on Monday and committed to the government’s timeline to privatise PIA by June 15, 2024.

Some meeting participants expressed confidence that PIA’s sell-off would occur before the country secures the next IMF loan package. Finance Minister Muhammad Aurangzeb is expected to formally approach the IMF for a new loan programme at the Fund’s annual meeting in mid-April 2024.

However, a source dispelled the impression that PIA privatisation is a prerequisite condition for the IMF’s next loan programme.

The PIA board formally approved the appointment of international financial advisor, Ernst & Young, for the privatisation transaction.

According to a source familiar with the developments surrounding the airline’s sell-off, the advisor’s briefing to the board projected that PIA’s privatisation may fetch $250-300 million for the government.

However, the actual value of PIA may differ once interested buyers conduct due diligence of the national carrier.

Sad, sad moment for the nation. But one that may bring some productive change, PIA had become a corrupt behemoth draining finances and resources, riddled with nepotism and managed by sycophants.

 

[atmi_bum]

The government decided to transfer PIA's debt into the national debt to facilitate the sale. About 268 billion Rupees will be added to the debt. Details of the plan are here:

https://tribune.com.pk/story/2455185/pia-debt-burden-shifted-to-taxpayers

 

[Jf Thunder]

meanwhile, the Air Marshal has managed to land a job, from CEO PIA to CEO Holding Company !

 

[PK784]

Why not just close it down? Pak already has many other airlines.
PIA now only has 27 or 28 operational aircraft.

 

[Wood]

Good move for Pakistan's exchequer. PM Shehbaz does not seem to shy away from unpopular decisions for the good of the country. This is a hallmark of great leadership

 

[Sainthood 2.0]

Sad, sad moment for the nation

I wish for a day where we privatize (not monopolize/oligarchize) every government department short of the army, police, and Rescue 1122.
Privatize schools, healthcare, energy, aviation, airports, ports, and the mining sector, public-private partnerships for railways and public transportation

 

[Javha]

estimating to fetch $250-300 million

What is the Pak govt smoking? Who would pay 300 Million for PIA?

It is highly indebted and overstaffed. It's primary operations are to a country going through an economic crunch and unstable govt policy regarding foreign exchange.

If Pak govt puts a reserve price of 250-300 Million USD, it's just another way of saying we don't wish to sell the airline.

 

[ziaulislam]

PIA board approves privatisation plan amid IMF talks​

Commits to govt target of June 2024 for sell-off, aims to fetch $250-300m

Salman Siddiqui
March 27, 2024

design: mohsin alam


The board of directors of Pakistan International Airlines (PIA) has approved the government’s plan to privatise the national flag carrier ahead of the country securing a new International Monetary Fund (IMF) loan programme, estimating to fetch $250-300 million through the sell-off likely to a Middle Eastern country.

Following its reconstitution on Friday, March 22, the board of directors convened its first meeting on Monday and committed to the government’s timeline to privatise PIA by June 15, 2024.

Some meeting participants expressed confidence that PIA’s sell-off would occur before the country secures the next IMF loan package. Finance Minister Muhammad Aurangzeb is expected to formally approach the IMF for a new loan programme at the Fund’s annual meeting in mid-April 2024.

However, a source dispelled the impression that PIA privatisation is a prerequisite condition for the IMF’s next loan programme.

The PIA board formally approved the appointment of international financial advisor, Ernst & Young, for the privatisation transaction.

According to a source familiar with the developments surrounding the airline’s sell-off, the advisor’s briefing to the board projected that PIA’s privatisation may fetch $250-300 million for the government.

However, the actual value of PIA may differ once interested buyers conduct due diligence of the national carrier.

What a joke
How the hell are they going to sell it when it has debt of 2-3 billion dollars

Even if high end foreign assets like newyork real estate the market isn't good these days for that

Bottom line is Pia current valuation is negative 1b$ and is brand is actually a liability rather then a asset

 

[ghazi52]

The finance minister, speaking at a ceremony at the Karachi Stock Exchange,

PIA privatisation

The minister mentioned efforts to privatize struggling enterprises, such as Pakistan International Airlines (PIA), and to improve airport operations. He expressed his determination to complete the privatization of PIA by June, along with efforts to reduce circular debt and boost exports.

On March 27, the board of directors of Pakistan International Airlines (PIA) approved the government’s plan to privatise the national flag carrier ahead of the country securing a new International Monetary Fund (IMF) loan programme, estimated to fetch $250-300 million through the sell-off likely to a Middle Eastern country

 

[Forsvaret]

Good move for Pakistan's exchequer. PM Shehbaz does not seem to shy away from unpopular decisions for the good of the country. This is a hallmark of great leadership

Biryani overdose as usual

 

[PK784]

What a joke
How the hell are they going to sell it when it has debt of 2-3 billion dollars

Even if high end foreign assets like newyork real estate the market isn't good these days for that

Bottom line is Pia current valuation is negative 1b$ and is brand is actually a liability rather then a asset

It is to be sold to a private buyer without the debt. The debt will remain with PK gov.

 

[ziaulislam]

It is to be sold to a private buyer without the debt. The debt will remain with PK gov.

IMF won't allow it..it will create too much debt
But let say IMF qpporves the sale

Even then it won't go through unless investment situation improves because of too many issues with Civil aviation in Pakistan (corruption plus military involvement) and over employed PIA memebers

 

[maithil]

Will be interesting to see how Government gives away PIA and its assets for 250 million dollars and takes over 3 Billion worth debt.. Some how this is being considered as a good deal. IMO this is another future corruption case being prepared against Sharif family, which will be used when required.

 

[PK784]

IMF won't allow it..it will create too much debt
But let say IMF qpporves the sale

Even then it won't go through unless investment situation improves because of too many issues with Civil aviation in Pakistan (corruption plus military involvement) and over employed PIA memebers

IMF will probably be ok as selling off PIA (or even shutting it down) will prevent the debt from getting any larger as PIA is loss making.