ISLAMABAD: The Privatisation Commission has approved the appointment of British multinational Ernst & Young as the financial advisor for the privatisation of Pakistan International Airlines (PIA), with the aim of preparing the loss-making entity for sale, ARY News reported on Friday.
The decision was taken during a meeting of Board of Directors (BoD) of Privatization Commission, which was chaired by Minister Fawad Hasan Fawad.
Sources told ARY News that the commission had received technical and financial proposals from eight financial advisory firms.
However, it approved the appointment of British multinational Ernst & Young as the financial advisor to prepare plans for privatisation of the national flag carrier.
The adviser would lead a consortium to manage the planned stake sale of the Pakistan International Airlines (PIA), sources added.
Besides the appointment, the commission also deliberated matters related to the House Building Finance Company Limited (HBFC) and decided to extend the tenure of its Financial Advisor.
Sources claimed that the commission also extended the tenure of the Financial Advisor for First Women Bank.
The meeting also decided to determine liability for delay in privatisation of House Building Finance Company (HBFC) and First Women Bank.
It is pertinent to mention here that Caretaker Prime Minister Anwaarul Haq Kakar had already directed authorities concerned to expedite the privatisation process of Pakistan International Airlines (PIA).
Read more: ECC approves Rs8 b bridge financing for PIA
Earlier, the Economic Coordination Committee (ECC) of the Cabinet approved a Rs. 8 billion bridge financing package for Pakistan International Airlines (PIA).
The financing will be provided through the Civil Aviation Authority’s (CAA) resources to meet PIA’s urgent overdue payment obligations.
The ECC allowed the Aviation Division to proceed with the bilateral arrangement between the CAA and PIA.
The Caretaker Federal Minister for Finance, Revenue, and Economic Affairs, Dr. Shamshad Akhtar presided over the meeting, according to news statement issued by the finance ministry.
The Aviation Division submitted a proposal for provision of financial support to PIACL through the Civil Aviation Authority for certain emergent needs of the airline.