ISLAMABAD: With just two days to go for general elections, Cabinet approved restructuring of Pakistan International Airlines (PIA) on recommendation of Privatisation Division.

Cabinet in its previous meeting approved appointment of financial advisor for financial and administrative restructuring of airlines.

Cabinet meeting, chaired by Caretaker Prime Minister Anwaarul Haq Kakar, was told that financial advisor had formulated financial restructuring plan of PIA in line with international precedents under which airlines will be divided into two companies, Top-Co and Hold-Co.

PIA’s core operations of engineering, ground handling, cargo, flight kitchen and training will be incorporated into Top-Co while other entities such as precision engineering complex, PIA investment limited and others subsidiaries and properties will be incorporated in Hold-Co.

These measures will help attract capital investors to PIA. Cabinet directed sub-committee on Privatisation to deal with matters related to settlement of government-owned enterprises with PIA as soon as possible.

Approval came after the Election Commission of Pakistan barred caretaker government from privatising national carrier.

Published in The Daily National Courier, February, 07 2024

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