Islamabad [Pakistan], May 6 : In a major development, the Securities and Exchange Commission of Pakistan (SECP) has approved the legal segregation of Pakistan International Airlines (PIA), Geo News reported.
According to a press release issued by the Ministry of Privatisation on Sunday, the restructuring scheme was approved on May 3 for the transfer of non-core assets and liabilities of PIA to PIA Holding Company Limited.
The Pakistan Stock Exchange (PSX), ministries of finance and privatisation, Central Depository Company (CDC) and National Clearing Company Limited (NCCL) have been informed about the scheme, said the press release.
This order marks a significant milestone in the collaborative efforts of the Privatisation Commission, Finance Division, Aviation Ministry and PIA to restructure the national carrier, Geo News reported.
The scheme has been made effective from April 30, 2024 the press release said, adding that the SECP has directed the PSX, CDC and NCCL to ensure smooth listing of PIA Holding Company Limited as per the applicable rules and regulations.
Pakistan, in deep economic crisis, agreed in June 2023 to overhaul loss-making state-owned enterprises under a deal with the International Monetary Fund (IMF) for a USD 3 billion bailout.
The government decided to privatise PIA just weeks after signing the IMF agreement.
The caretaker administration, which took office in August to oversee the February 8 election, was empowered by the outgoing parliament to take any steps needed to meet the budgetary targets agreed with the IMF, Geo News reported.
PIA had liabilities of 785 billion Pakistani rupees (USD 2.81 billion) and accumulated losses of 713 billion rupees as of June last year. Its CEO has said losses in 2023 were likely to be 112 billion rupees.
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