The Privatisation Commission Board has taken significant steps toward negotiating the sale of two state-owned banks, First Women Bank Limited (FWBL) and House Building Finance Company Limited (HBFCL).
In a meeting chaired by caretaker Minister for Privatisation Fawad Hasan Fawad, the board approved the formation of a negotiation committee to finalize the HBFCL transaction. Additionally, transaction committees for HBFC and FWBL were sanctioned.
The board’s discussions also delved into the proposed transaction structure for the divestment of Pakistan International Airlines Corporation Limited (PIACL). This strategy involves separating the core aviation business and assets from non-core assets and liabilities.
A consultative meeting with key government stakeholders, including finance, aviation, law, privatisation division secretaries, and the CEO of PIACL, along with financial advisors, further examined the roadmap for the legal segregation of PIACL.
The meeting outlined a plan to make core aviation services more appealing to potential investors while retaining non-core assets in a holding company for later disposal.
Financial advisors presented a proposal for the legal segregation of PIACL during the session, with a focus on eventually divesting core aviation services.
The board is set to reconvene to deliberate on the approval of PIACL’s legal segregation/draft scheme of arrangement and the transaction structure proposed by financial advisors.
Upon the board’s endorsement, the legal segregation plan and transaction structure will be submitted to the Federal Cabinet through the Cabinet Committee on Privatization (CCOP) for final approval.
Caretaker Minister Fawad emphasized the urgency of expediting the privatization process, underscoring the importance of transparency and competitiveness in these transactions.
