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With just two days to go for general elections, the federal cabinet on Tuesday approved the restructuring of national flag carrier Pakistan International Airlines (PIA), state-run Radio Pakistan<\/em> reported<\/a>.<\/p>\n The development comes after the Election Commission of Pakistan (ECP) asked<\/a> the government to \u201crefrain from taking any further steps including the signing of an agreement\u201d about the privatisation of PIA or its entities till its formal clearance.<\/p>\n In a letter to the cabinet secretary, the electoral watchdog had reminded the federal government of Article 230 of the Constitution, which explains the roles and limitations of the caretaker government and sought all relevant cabinet documentation, sources told Dawn<\/em>.<\/p>\n The ECP had directed the government to \u201cprovide all relevant documents prepared for approval of the Cabinet containing comprehensive privatisation programme in relation to the privatisation of PIA\u201d to the ECP as required under Clause 5(b) of the Privatisation Commission Ordinance, 2000 and Section 230 of the Constitution.<\/p>\n According to Radio Pakistan<\/em>, the federal cabinet \u2014 chaired by caretaker Prime Minister Anwaarul Haq Kakar in Islamabad today \u2014 consented to the appointment of a financial advisor for the financial and administrative reorganisation of PIA.<\/p>\n \u201cThe cabinet was informed that PIA will be bifurcated into two companies namely TopCo and HoldCo. Basic engineering operations, ground handling, cargo, flight kitchen and training will be attached with TopCo, while departments like PIA Investment, Precision Engineering Complex and other subsidiaries as well as properties will be put under HoldCo,\u201d the report said.<\/p>\n It highlighted that these measures would help attract investors towards PIA.<\/p>\n Moreover, the cabinet also directed its sub-committee on privatisation to dispose of matters related to state-owned entities\u2019 claims of undecided amounts on the national flag carrier at the earliest, the report added.<\/p>\n In the past, elected governments have shied away from undertaking unpopular reforms, including the sale of the flag carrier. But Pakistan, in deep economic crisis, agreed in June to overhaul loss-making state-owned enterprises under a deal with the International Monetary Fund (IMF) for a $3 billion bailout<\/a>.<\/p>\n The government decided<\/a> to privatise PIA just weeks after signing the IMF agreement.<\/p>\n The caretaker administration, which took office in August to oversee the Feb 8 election, was empowered<\/a> by the outgoing Parliament to take any steps needed to meet the budgetary targets agreed with the IMF.<\/p>\n \u201cOur job is 98 per cent done,\u201d Privatisation Minister Fawad Hasan Fawad had told<\/a> Reuters<\/em> earlier this week. \u201cThe remaining 2pc is just to bring it on an excel sheet after the cabinet approves it,\u201d he added.<\/p>\n PIA had liabilities of Rs785bn ($2.81bn) and accumulated losses of Rs713bn as of June last year. Its CEO said losses in 2023 were likely to be Rs112bn.<\/p>\n Besides its losses and debt, PIA\u2019s governance and safety standards have been questioned by global aviation authorities for some years.<\/p>\n Embroiled in crisis<\/h2>\n