Islamabad February 7 2024: Pakistan’s Federal Cabinet on Tuesday approved the restructuring of Pakistan International Airlines (PIA) on the recommendation of the Privatization Division.
The cabinet, in its previous meeting approved the appointment of a financial advisor for financial and administrative restructuring of the airlines.
The cabinet, in a meeting chaired by Caretaker Prime Minister Anwaar-ul-Haq Kakar was told that the financial advisor had formulated a financial restructuring plan of PIA in line with international precedents under which the 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.
The cabinet also directed the cabinet sub-committee on Privatization to deal with the matters related to settlement of government-owned enterprises with PIA as soon as possible.
On the recommendation of the ministry of Privatization, cabinet also approved the privatization of First Women Bank Limited.
