PIA’s privatisation, restructuring plan approved 

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.