ISLAMABAD: The government is set to decide the future of Pakistan International Airlines Company Limited (PIACL), weighing options between full privatisation or share divestment through a government-to-government arrangement.
During a meeting of the Cabinet Committee on Privatisation (CCoP), chaired by Deputy Prime Minister and Foreign Minister Ishaq Dar, the sole bid of Rs10 billion for a 60 per cent stake in PIACL was rejected. The committee reaffirmed the government’s resolve to pursue privatisation or divestment through a government-to-government agreement.
The CCoP accepted a recommendation from the Privatisation Commission’s board to turn down the bid submitted by the real-estate development company Blue World City, according to a press release issued by the commission on Friday.
It was disclosed during the commission’s last board meeting that Turkish Airlines and Singapore Airlines had expressed interest in acquiring the national carrier. The board discussed these proposals, along with various options for expediting PIACL’s privatisation.
The CCoP acknowledged the Aviation Division’s assessment of PIACL’s financial performance and noted improvement in its fiscal position. A committee, led by the state minister for finance, was formed to evaluate transaction options for the Roosevelt Hotel and determine the legal framework for its potential sale.
The committee also directed the resolution of all issues and the conclusion of an agreement for the sale of the Services International Hotel before its next meeting. The meeting was attended by ministers of privatisation, industry, food, commerce, and power, along with the minister of state for finance and federal secretaries.
Published in Dawn, November 16th, 2024
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