Pakistan Appoints Financial Advisor for PIA’s Privatisation

Pakistan’s Privatisation Commission has recently approved the appointment of Ernst & Young, a British multinational, as the financial advisor for the privatisation of Pakistan International Airlines (PIA). The decision was made during a meeting chaired by Minister Fawad Hasan Fawad. The commission had received proposals from eight financial advisory firms, but Ernst & Young was chosen to prepare plans for the sale of the national flag carrier. They will lead a consortium to manage the stake sale process. Additionally, the commission extended the tenure of its Financial Advisor for the House Building Finance Company Limited (HBFC) and First Women Bank. It also discussed the liability for the delay in privatising HBFC and First Women Bank.

This appointment is a significant step towards the privatisation process of PIA. Its urgency was highlighted by the approval of an Rs. 8 billion bridge financing package by the Economic Coordination Committee (ECC) of the Cabinet. The financing will be provided through the resources of the Civil Aviation Authority (CAA) to fulfill PIA’s overdue payment obligations. The ECC allowed the Aviation Division to proceed with the bilateral arrangement between the CAA and PIA. During the ECC meeting, the Caretaker Federal Minister for Finance, Revenue, and Economic Affairs, Dr. Shamshad Akhtar, presided over the discussions. The Aviation Division presented a proposal for financial support to PIACL through the CAA for the airline’s emergent needs.

This appointment and the bridge financing package signal the government’s commitment to restructure and transform PIA. It is aimed at improving the financial health and sustainability of the national flag carrier, ensuring its long-term viability in the competitive aviation industry. As the privatisation process moves forward, we can expect further developments and initiatives to make PIA a profitable and efficient airline for the benefit of all stakeholders.

Pakistan has appointed the British multinational Ernst & Young as the financial advisor for the privatization of Pakistan International Airlines (PIA). The decision was made by the Privatisation Commission, with the aim of preparing PIA for sale. The advisor will lead a consortium for the stake sale of PIA.