PIA-Arif Habib Predicts PIA Privatization to Conclude by Early October 2024. Arif Habib, Chairman of the Arif Habib Group, has announced that the privatization of Pakistan International Airlines (PIA) is expected to be completed by the first week of October 2024.
Speaking to journalists at the Naya Nazimabad Gymkhana, Habib expressed optimism about the bidding timeline, stating, “We anticipate that the bidding process for PIA will wrap up by early October 2024.”
He emphasized that any prospective buyer will need to increase PIA’s fleet by at least 20 aircraft to ensure smooth operations. Habib is confident that with the right strategic steps, PIA can transition from a loss-making entity to a profitable one.
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“Although PIA is operationally viable, resolving its debt and employee-related issues post-takeover could lead to a swift turnaround and profitability,” he remarked.
Regarding ownership, Habib noted that potential buyers are interested in acquiring 75% of the airline’s shares to gain majority control. He also mentioned that the airline cannot be sold again for three years following its privatization.
Habib further explained that Rs 600 billion of PIA’s debt would be moved to a holding company, with the remaining Rs 200 billion to be transferred to the buyer.
Habib pointed out that a significant part of PIA’s debt comprises tax liabilities and civil aviation dues. He emphasized that providing buyers with ample time to address these debts would offer significant relief and support the airline’s recovery.
A major obstacle for PIA is its enormous debt, totaling Rs 800 billion, including accrued interest.
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