The Privatisation Commission has selected Ernst & Young, a renowned British multinational firm, as the financial advisor for the privatisation process of Pakistan International Airlines (PIA). This move is part of a broader strategy to prepare the loss-making national airline for sale.
During a Board of Directors of the Privatization Commission meeting chaired by Minister Fawad Hasan Fawad, the decision was made to appoint Ernst & Young. Of eight financial advisory firms that submitted proposals, Ernst & Young was chosen to lead the privatisation efforts. They will be heading a consortium to manage the stake sale of PIA.
The commission also discussed issues related to the House Building Finance Company Limited (HBFC) and decided to extend the tenure of its Financial Advisor. Additionally, the tenure of the Financial Advisor for the First Women Bank was extended. The meeting also aimed to identify responsibility for delays in the privatisation of HBFC and the First Women Bank.
The caretaker Prime Minister Anwaarul Haq Kakar has previously directed the concerned authorities to accelerate the privatisation process of PIA.
In a related development, the Cabinet’s Economic Coordination Committee (ECC) approved a Rs. 8 billion bridge financing package for PIA to meet its urgent payment obligations. The funding, facilitated by the Civil Aviation Authority’s (CAA) resources, was approved by the ECC, allowing the Aviation Division to proceed with the arrangement between the CAA and PIA.
The Aviation Division submitted the proposal for this financial support, and the meeting for its approval was presided over by Dr. Shamshad Akhtar, the Caretaker Federal Minister for Finance, Revenue, and Economic Affairs.