<\/p>\n
As part of reforms urged by the International Monetary Fund (IMF), the Privatisation Commission said on Tuesday that it was putting on the block a stake ranging from 51 per cent to 100pc of Pakistan International Airlines (PIA).<\/p>\n
The disposal of the flag carrier is a step past elected governments have steered away from as likely to be highly unpopular, but progress on the privatisation will help pursue further funding talks with the IMF.<\/p>\n
In a newspaper advertisement, the panel set a deadline of May 3 to receive statements of interest in PIA, which has piled up arrears of hundreds of billions of rupees, and it appointed<\/a> EY Consulting as the financial adviser for the deal.<\/p>\n \u201cThe restructured PIA is being offered to potential investors in its \u2018debt-lite\u2019 new structure for a 51pc-plus stake,\u201d the Privatisation Commission said in a website<\/a> presentation.<\/p>\n The panel aimed to sign a share price deal by June 24, after completing all steps in the transaction, it added. \u201cThe restructured PIA provides an opportunity to invest in a a full-service airline.\u201d<\/p>\n PIA\u2019s 23pc share of Pakistan\u2019s aviation market is the biggest, and the airline could grow further to exceed historic levels of 30pc, the panel said.<\/p>\n With a fleet of 34 aircraft comprising 17 Airbus A320s, 12 Boeing B777s and 5 ATRs, the airline loses traffic to Middle Eastern carriers, who have a market share of 60pc, because of an absence of direct flights to destinations.<\/p>\n The carrier has air service pacts with 87 countries, and landing slots at key destinations such as London Heathrow.<\/p>\n The re-organisation of the business will separate the aviation-related aspects from non-core components, so freeing the operating subsidiary of a large portion of legacy debt.<\/p>\nRestructuring<\/h2>\n