PIA’s privatisation, restructuring plan approved 

Different proposals regarding future of airline’s employees are also under consideration

The board of directors of Pakistan International Airlines (PIA) has approved privatisation and restructuring plan of the national flag carrier. 

According to a PIA’s notice to the Pakistan Stock Exchange (PSX) on Tuesday, “The Board of Directors of the Company in its 83rd meeting held on March 25, 2024, has approved the Scheme of Arrangement (SOA) for restructuring and privatisation of Pakistan International Airlines Corporation Limited (PIACL) along with its ancillary modalities, to be filed with Securities and Exchange Commission of Pakistan (SECP).”

Meanwhile, Geo News reported that the restructuring and privatisation plan also discussed different proposals regarding the future of the airline’s employees.

Earlier, the government engaged Ernst & Young, a global financial advisory firm, to devise a plan for the financially struggling firm. The plan was finalized during the interim government’s tenure.

The International Monetary Fund (IMF) has urged Pakistani authorities to privatize state-owned enterprises to rejuvenate the ailing economy.

According to sources, Ernst & Young’s plan, presented to the board, included discussions on a voluntary retirement scheme. The transaction advisor also recommended the retirement of employees with less than 4 years of service remaining.

The Board of Directors of PIA has been inactive since October 2023. The federal cabinet recently approved its reconstitution, as per the requirement to seek approval for major decisions concerning the company.

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5 COMMENTS

  1. Hope Pia get some new updated planes with new tvs better quality food and better staff otherwise there are wasting there time

  2. its about time that PIA is getting privatised which should have happened years ago.
    InshaAllah with the right team it will be run as a business and not charity.
    NEW PLANES..
    THE RIGHT NO OF EMPLOYEES.
    WE have missed PIA especially the public from Europe & UK

  3. My suggestion that do not give to other country which they are planning giving to Qatar to their front man and behind all these Nawaz and zerdari their should be very easy solution
    (1) give golden shake hands or kick extra ppls who given job by political parties give them little money to tell them to leave
    (2) we want our own ppls to takeover like sialkot airline I like to PIA emerge with them and give management to them let them run and I am sure they can run better then current political choice ppls
    They can safe and third and more important
    Sell the usa and France hotel which I think worth about nearly $2 billion and they try to giveaway low values if they need we can try to sell for them and get good price that money can be used return the pia loan and rest to improve airline and get few new planes we are missing PIA at least foreign exchange was coming to Pakistan please do not sell IMF wants take our country don’t let it happen talk to sialkoti business community I am sure they will take over
    Please I humbly requested you do not sell it have a meeting with Sialkot business community and I am sure they will happy to help the country airline
    If you need we can work with you to solve the problem but we need to know what is the loan pia have to pay we can give you give you sulotion and make a purposel for it . Waiting for your reply back soon
    Regards
    Tariq N Butt

  4. PIA schould be a Private airline.
    There is no Otter solution.
    Austria airline is Sold to Germany only with one Euro.
    Most of Eoropean airline have been Sold.
    Why the people of Pakistan has to pay every day 50 coror to PIA ?

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