The commercial debt negotiations of Pakistan International Airlines Corporation Limited (PIACL) have been successfully concluded among the government, domestic lender banks and Development Finance Institutions (DFIs) as part of the airline’s restructuring for privatisation.
A statement issued by the PIACL on Friday said the step paved the way for the filing of the Scheme of Arrangement (SOA) for legal segregation of PIACL with the Securities and Exchange Commission of Pakistan (SECP) on Thursday.
The federal cabinet approved the legal segregation plan of PIACL on February 6, 2024.
PIACL’s privatisation has been a priority agenda for the federal government, and the above developments represent one of the most complex restructuring exercises undertaken to prepare PIACL for privatisation.
This arrangement will help make a viable business case for private sector investment in the national carrier. The domestic banks and financial institutions demonstrated their firm commitment to the government’s privatisation initiative and extended their full co-operation in finalising the arrangement for PIACL’s commercial domestic debt.
Under the arrangement, PIACL’s Commercial domestic debt will be moved to PIA Holding Company Ltd., established by the federal government as part of PIACL’s legal restructuring.
The term sheet covering mutually agreed commercial aspects of loan transfer was signed yesterday between PIACL, PIA Holding Company and lender banks.
In order to manage the affairs of PIA Holding Company diligently, a seven-member independent board comprising of ex-State Bank Governor with prominent leaders from banking and other areas of expertise was notified this week by the federal government.
The new board in its inaugural board meeting, held at Islamabad, endorsed the Scheme of Arrangement delineating the pathway for the privatisation of Pakistan International Airlines.
Following the approval of the draft SOA by PIACL and PIA Holding Company boards, the Scheme of Arrangement (SOA) for PIACL restructuring was filed with the Securities and Exchange Commission of Pakistan (SECP) yesterday.
Following these significant milestone developments, Expression of Interest (EOI) from potential investors for privatisation of PIACL have been planned to be called in the coming days.
Hi I seen this news regarding local bank loans which given to PIA banks say they can negotiate well they have to become they know if they take them in court to make them bankruptcy they won’t get full money or even 50% of them so they have no choice to negotiation which is best way to deal may I know what is the total loan on PIA ? So I can see what and how can we can help PIA to meet with that payments is their any website we can see all that financial details for PIA please if is their any let me have it.
Waiting for your response back soon
Regards
Tariq N Butt
The aviation industry is at historic boom all over the world. Many leading airlines striving to get more planes and flying crew as there is abnormal shortage around the globe. Even United States offering pilots job to expats through EB2 NIW PROGRAMME. PIA pilots are constantly going to gulf airlines because they are offering four tonfive times more salary in comparison of PIA salary. So there is a boom in aviation industry.
Having golden routes around the world which other airlines can not even think of it, PIA is under loss since decades.
Did anybody ever asked why PIA is running under loss???…. Not because of PIA employee but because of poor management, incompetent and Corruption at higher ups.
One insane aviation minister speech of fake pilot license added fuel to fire in PIA losses.
There is no accountability for such people because everyone is in the same shoes… Its very unfortunate to privatise it even when they could have earn a huge foreign income…. A sad story for PIA demise…