Following its recent reformation, the Pakistan International Airlines (PIA) board has endorsed a governmental plan to privatize the flag carrier, aiming to generate $250-300 million, possibly from a Middle Eastern buyer, by June 15, 2024.
This decision precedes anticipated negotiations for a new IMF loan program, scheduled by Finance Minister Muhammad Aurangzeb in mid-April 2024. Despite speculations, PIA’s privatization is not mandated for the upcoming IMF loan. Ernst & Young has been appointed as the financial advisor for the sale, with projections indicating the potential revenue. The actual valuation awaits buyer due diligence. Potential buyers, likely from the UAE or Qatar, have shown interest.
An official notification revealed the board’s approval of the Scheme of Arrangement for PIA’s restructuring and privatization. The board’s consensus is crucial for advancing the Privatisation Commission’s strategy. The divestiture involves significant steps, including restructuring PIA into operational and debt management entities.
Despite the complex process, the goal remains to transfer a 51% stake with management control by the deadline. The government plans to assume responsibility for PIA’s $88 million foreign loan, contrasting with the restructuring approach for its Rs243 billion domestic debt. This decision will likely affect the national treasury due to higher interest and exchange rate risks.
 is on course for privatization by June 2024, with expectations to attract $250-300 million, likely from a Middle Eastern buyer. This strategic move comes as Pakistan prepares for new IMF loan program negotiations.){kind=link}