ISLAMABAD: The Special Investment Facilitation Council (SIFC) on Friday approved the demerger of the national airline PIA into two entities without getting the valuation from the financial advisor, while the new liabilities of Rs. will be transferred to the holding company.
According to details, before the upcoming elections, the federal cabinet is ready to approve the actual transaction model for the sale of PIA’s key operations, and the federal cabinet will approve them next week, which commercial banks have agreed to 280 Billions of rupees debt will be re-profiled with conventional and Islamic funding and it will be at 12% interest rate for a maturity period of 10 years.
These remaining dues will be settled through privatization of PIA and budgetary allocations.
Top government sources confirmed to The News that Caretaker Finance Minister Dr Shamshad Akhtar had raised very useful questions regarding weaknesses in valuation by financial advisors.
Administrative issues and problems of the airlines also became the reason for the delay of the flights
Although the banks have agreed to reprofile the PIA loan, they have not yet given their written consent in this regard.
The Privatization Commission is expected to present a detailed summary before the Cabinet meeting by next Tuesday or Wednesday.
When this correspondent sent questions in this regard to the Privatization Commission’s caretaker minister Fawad Hasan Fawad and asked him about various issues, his reply was that SIFC has approved the division of PIA into two parts, which was suggested by the financial advisor.
According to him, SIFC has approved the procedure for determining the value of PIA, this method of determining the value will be based on the weighted average to arrive at the value of PIA.
He added that selling a PIA is not like selling a building but the procedure is used to finalize things that are not disclosed at the initial stage, after which the reference band is trimmed. Is.
The formula was presented to the SIFC and they approved it, the approval of the Federal Cabinet will also be sought for the entire divestment plan which will determine the costing mechanism.
A comprehensive five-year business plan will also be submitted and how much investment is expected from potential buyers and how loans will be arranged will be presented to the cabinet for approval.
He said that the government will not include all the liabilities in its accounts but will be transferred to a company called Hold, and as the assets are sold, these liabilities will continue to be paid.
The overseas assets, including the Roosevelt Hotel and a hotel in Paris, will be developed and no overseas assets will be sold in the Qazi business deal of PIA, he said, adding that both these overseas assets will also be held by the holding company. will be transferred.
He said that buyers are expressing their interest in PIA and they have also been informing the financial advisor about their interest. Approval will be obtained