Pakistan International Airlines (PIA) is continuing its privatisation process and the federal government has approved the transfer of Rs14.2 billion worth of properties to PIA’s successful bidders. The intention behind the move is to make the deal more appealing and to ensure a seamless transition of assets to the new buyers.
According to official details, the approved properties include selected land and real estate assets linked to the national flag carrier. These assets will be sold to the winning bidder in accordance with the terms of the privatisation agreement, but some strategic and non-transferable assets in government hands.
The approval is another significant move towards finalizing the much-anticipated privatisation of Pakistan International Airlines (PIA), which has been struggling financially for some time. These properties will help to enhance the overall value of the transaction and create more investor confidence, according to authorities.
The asset transfer has been designed in line with the privatisation framework approved by the authorities, said government officials. The determination will make the ownership transfer smoother and help facilitate a successful sale.
The privatisation of PIA is part of the government’s economic reform programme which is designed to cut the financial strain of companies facing losses in the government’s list of state-owned enterprises. There have been several announcements to this effect, with the belief that private capital is needed to boost operational efficiency and to make the national airline sustainable over the long term.
The new development follows the government’s steady progress in the process towards privatisation, with regulatory approval and financial restructuring of the company. As the transaction nears its completion, additional statements are likely to be issued announcing the completion of the transaction and the formal transfer of ownership.
