KARACHI: The government took yet another step toward the privatization of Pakistan International Airlines (PIA), as the newly established PIA Holding Company convened its first board meeting in Islamabad on Wednesday, initiating its operations.
The entity was formed following the approval of PIA’s restructuring plan last July by its board of directors, with an aim to expedite the national carrier’s privatization by managing the airline’s liabilities and assisting in its transfer to potential investors.
PIA’s privatization also aligns with the government’s commitment to structural economic reforms under the International Monetary Fund’s financial assistance programs.
“The board in its first meeting held on March 27, 2024, endorsed the Scheme of Arrangement delineating the pathway for the privatization of Pakistan International Airlines,” said an official statement circulated after the holding company’s inaugural board meeting. “This comprehensive scheme, already receiving the stamp of approval from both the Federal Cabinet and the [Pakistan International Airlines Corporation Limited] PIACL Board, sets the stage for the next chapter of the national carrier.”
“Additionally,” it continued, “the board meticulously deliberated on various strategic facets of the business, thereby laying down the groundwork for the efficient functioning of the holding company.”
Only a day earlier, the federal cabinet approved the board of PIA Holding Company, with former central bank governor, Tariq Bajwa, appointed as its chairman.
PIA has faced multiple financial challenges over the years, seeking financial bailouts from successive government.
With a struggling national economy, Pakistan has started working toward its privatization.
The decision is also expected to improve the service provided by the airlines to its customers.
