As Pakistan International Airlines (PIA) navigates the labyrinth of debt restructuring, the Government is concurrently drafting a privatisation blueprint. This scenario has sparked a myriad of speculations about PIA’s future trajectory. PIA has, however, unequivocally distanced itself from the potential restructuring strategies that have emerged in the media.
In conversation with Profit, Abdullah Khan, the Head of Marketing & Corporate Communications at PIA, clarifies that the company’s current endeavour is solely to enlist a financial advisor for balance sheet revamping.
“The forthcoming course of action will be determined in alignment with the recommendations presented and in accordance with the charter and mandate of the Privatisation Commission,” asserts Khan.
These comments emerge in the wake of whispers about diverse restructuring schemes circulating in the media. These include — but are not limited to — proposals such as permitting PIA to retain the federal excise duty paid by customers, which amounts to approximately Rs 15 billion per annum, waiving PIA’s civil aviation fee which totals another estimated Rs 20 billion annually, and persuading banks to forgo interest on loans amounting to Rs 50 billion per year.
Profit has already covered in detail how PIA got itself to the brink this time, and what a potential privatisation deal might look like if the Government of Pakistan decides to do so.
Should there be an interest in assuming the role of PIA’s advisor for its balance sheet restructuring, the company welcomes bids until 3:00 pm on October 6.