
The Privatisation Commission announced on Sunday that the Securities and Exchange Commission of Pakistan (SECP) has approved the restructuring of the Pakistan International Airlines Corporation Limited (PIACL).
The Privatisation Commission has released a statement stating that the legal separation of the PIACL for its restructuring was a highly intricate task, but it has now been completed.
The statement clarified that the SECP, with the approval of a scheme of arrangement granted on May 3, has authorized the transfer of non-core assets and liabilities of the PIACL to the PIA Holding Company Limited.
According to the statement, this restructuring order for the PIACL marks a significant milestone in the collaborative efforts of the Privatisation Commission (PC), Finance Division, aviation ministry, and national carrier.
The implementation of the plan commenced on April 30th of the current year.
The SECP has instructed the Pakistan Stock Exchange (PSX), Central Depository Company (CDC), and National Clearing Company of Pakistan Limited (NCCPL) to ensure compliance with the relevant rules and regulations for the listing of PIA Holding Company Limited.
In the previous month, the shareholders of PIA granted approval for the restructuring of the airline, expected to take place between July and August of this year.
This action is expected to face minimal political opposition in the privatization of the national carrier’s primary operations, potentially to foreign investors due to the necessity for foreign exchange – as advised by the International Monetary Fund.
Nonetheless, as the privatisation process of the PIA began, it seems that foreign companies are not interested in acquiring the majority stakes in the national carrier.