PIA’s restructuring scheme approved by SECP

Pakistan International Airlines (PIA) restructuring scheme has been approved by the Securities and Exchange Commission of Pakistan (SECP).

The Ministry of Privatisation in a press release dated May 5, stated that PIA’s restructuring scheme was approved on May 3 for the transfer of non-core assets and liabilities of PIA to PIA Holding Company Limited. 

The Pakistan Stock Exchange (PSX), ministries of finance and privatisation, Central Depository Company (CDC) and National Clearing Company Limited (NCCL) have been informed about the scheme, the press release added.

The scheme has been made effective from April 30, 2024, the press release said, adding that the SECP has directed the PSX, CDC and NCCL to ensure the smooth listing of PIA Holding Company Limited as per the applicable rules and regulations.

This marks a significant milestone in the collaborative efforts of the Privatisation Commission, Finance Division, Aviation Ministry and PIA to restructure the national carrier.

In June 2023, Pakistan agreed to overhaul loss-making state-owned enterprises under a deal with the International Monetary Fund (IMF) for a $3 billion bailout.

“The restructured PIA is being offered to potential investors in its ‘debt-lite’ new structure for a 51%-plus stake,” the Privatisation Commission said in a website presentation.