Islamabad: Pakistani government struggles financially to sell Britain’s Ernst & Young (EY) as financial advisor for the privatization of Pakistan International Airlines (PIA) The company has been fixed to prepare, The News reported.
The Privatization Commission Board, which met with caretaker Minister Fawad Hassan Fawad on Friday، Pakistan International Airlines Corporation approves appointment of Financial Adviser for Distribution (PIACL).
According to the publication, eight parties had proposed to become financial advisors.
The Evaluation Committee, formed by the Privatization Commission, declared the consortium led by Ernst & Young to be a “top-ranked” party based on the criteria.
The Commission has also set up a negotiating committee to finalize the Financial Services Agreement with the highest bidder.
It is noteworthy that the directive of caretaker Prime Minister Anwar-ul-Haq Kakar to expedite the privatization of PIA has been implemented.
The Economic Coordination Committee (ECC) has recently cleared a bridge financing package of Rs. 8 billion for PIA، Which is designed to fix overdue payments from the resources of the Civil Aviation Authority (CAA).
The ECC, chaired by Finance Minister Dr. Shamshad Akhtar, approved bilateral arrangements between the CAA and the PIA.
The Aviation Division’s proposal for financial assistance through the CAA to meet the airline’s critical needs has received attention.
The Board also extended financial services contracts to House Building Finance Corporation Limited (HBFCL) and First Women Bank Limited (FWBL) by 24 months.
The Board also discussed long-standing issues related to the 35-year pending privatization of Pak China Fertilizer Limited (PCFL).
Pakistan said in August that it had acquired the airline under a financial discipline plan agreed upon under the International Monetary Fund (IMF) bailout Will privatize.
The airline has long been in crisis.
PIA flights to Europe and the UK have been suspended since 2020 when the European Union’s Aviation Safety Agency launched a national carrier following a scandal over pilot licenses Had revoked permission to fly in the block.
