Privatisation Commission approved Ernst & Young as adviser for PIA’s privatization

The Privatisation Commission (PC) board on Friday approved the hiring of adviser Ernst & Young for the privatisation of the Pakistan International Airlines (PIA) a financially-struggling entity.

The Privatisation Commission board, held under the chairmanship of Federal Minister for Privatisation Fawad Hasan Fawad, granted approval for the appointment of financial adviser for the divestment of Pakistan International Airlines Corporation Limited (PIACL).

Fawad Hasan Fawad has said the government’s top-most priority is the privatization of PIA because of its unsustainable losses and increasing debt burden.We would try to sell the core PIA by the end of February but without deviating from the legal course. It may take 20 to 26 weeks to assess the value of all assets of PIA.

PIA incurred losses of Rs86 billion last year and this year’s estimate is a staggering Rs153 billion, making privatisation or grounding the airline a necessity. The government is considering selling at least 51% shares along with management control.

The Privatisation Commission (PC) board also granted a 24-month extension to financial services agreements to the House Building Finance Corporation Limited (HBFCL) and the First Women Bank Limited (FWBL) each.

The board also discussed longstanding issues related to the 35-year pending privatisation of the Pak-China Fertiliser Limited (PCFL).