In a formal agreement signed on Tuesday, the Privatisation Commission sealed a deal with a consortium led by British accounting firm Ernst & Young to provide financial advisory services for the divestment of Pakistan International Airlines Corporation (PIACL).
The agreement encompasses restructuring, legal, technical, and financial due diligence, as well as the fair valuation of PIACL.
The Ernst & Young-led consortium was selected as the financial advisor following approval by the Privatisation Commission Board on November 10.
Minister for Privatisation Fawad Hasan Fawad, present at the signing ceremony, expressed confidence in the successful execution of the transaction despite the challenging economic environment. He emphasized the commitment of all institutions involved to provide unwavering support to the financial advisor and assured seamless cooperation to facilitate their work for the best interests of all stakeholders.
Notably, the Economic Coordination Committee (ECC) recently approved an Rs8 billion bridge financing package for PIA, sourced from the resources of the Civil Aviation Authority (CAA) to settle outstanding payments.
Under the chairmanship of caretaker Finance Minister Dr. Shamshad Akhtar, the ECC approved a bilateral arrangement between the CAA and PIA, with the Aviation Division’s proposal for financial support through the CAA gaining support to address the airline’s pressing needs.
Notably, in February 2020, the cabinet approved the sale of 27 government-owned properties through the Privatisation Commission. In September 2020, 23 properties were auctioned out, with 13 sales not materializing later for various reasons.
Currently, 17 properties remain unsold, leading to the hiring of the Financial Advisor’s services in December 2021.