SECP Approves PIA Privatization Restructuring Plan

The Securities and Exchange Commission of Pakistan (SECP) has given the green light to the restructuring plan of Pakistan International Airlines Corporation Limited (PIACL). A press release from the Privatization Commission stated that the intricate process of legally segregating PIACL has concluded, with SECP’s approval of the Scheme of Arrangement on May 3.

This scheme facilitates the transfer of non-core assets and liabilities from PIACL to PIA Holding Company Limited. The collaboration among the Privatisation Commission, Finance Division, Aviation Ministry, and PIA has reached a significant milestone in restructuring the airline. The scheme became effective on April 30, 2024.

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Additionally, SECP has instructed the PSX, Central Depository Company, and National Clearing Company of Pakistan to ensure the smooth listing of PIA Holding Company Limited in accordance with the relevant regulations. Ten companies, including three domestic aviation firms, have expressed interest in acquiring a majority stake in PIA, as reported last week. Sources have revealed that Fly Jinnah, AirSial, Arif Habib Group, Shujaat Azeem Group’s consortium,

Tabba, Tariq Group, and Sehgal groups are among those interested. The deadline for PIA privatization, initially set for May 3, has been extended to the 18th to allow these companies sufficient time to finalize their proposals.