The Board of Directors of Pakistan International Airlines (PIA) has given its approval to the government’s proposal for the privatization of the national flag carrier. The decision was made following an extensive four-hour session by the newly formed board.
Sources familiar with the matter disclosed that obtaining approval from the board is a mandatory step as per the regulations set by the Securities and Exchange Commission of Pakistan (SECP). During the meeting, discussions also revolved around the future prospects of PIA employees.
Proposals suggesting the retirement of employees with just four years of service left and offering voluntary retirement options prior to the privatization of PIA were deliberated upon. Additionally, the board received a briefing on the company’s report from financial advisor Ernest Young regarding the privatization process.
It’s noteworthy that the PIA Board had remained inactive since October 2023. However, the formation of the new PIA Board of Directors was recently approved by the federal cabinet.
Meanwhile, the government has initiated steps to entrust the operations and management of Karachi, Islamabad, and Lahore airports to external entities with the objective of bolstering foreign exchange reserves to bolster the economy.
