Advisors propose divestment in PIA's core aviation services through legal segregation

January 09, 2024 (MLN): The Financial Advisors on Monday presented a proposal for the legal segregation of the Pakistan International Airlines Corp (PIACL) aimed at the separation of core aviation business and assets for eventual divestment of core aviation services in the first instance.

According to a press release issued on the day, the Caretaker Federal Minister for Privatization, Fawad Hasan Fawad chaired a consultative meeting on the legal segregation of PIACL.

The meeting was attended by all the key government stakeholders including the Secretaries of Finance, Aviation, Law, Privatization Division, and Privatization Commission as well as the CEO PIACL, legal and financial consultants of the ministries and the team of the Financial Advisors for the divestment of PIACL.

As per the proposal, the non-core assets will be retained in a Holdco structure for subsequent divestment in separate structures and transactions.

The roadmap for further process was discussed in detail and inputs of all stakeholders were taken for further rationalization and presentation to CCOP/Federal Cabinet for final approval.

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