The liabilities associated with Pakistan International Airlines (PIA) employees have exceeded Rs30.34 billion as the national carrier approaches a comprehensive privatisation agreement, official records reveal.
These documents indicate that PIA’s total assets are valued at Rs191.53 billion, while its total liabilities stand at Rs182.43 billion. Consequently, the airline’s net assets and equity are estimated at Rs9.1 billion.
In the course of the privatisation deal, the government has offered 11 properties valued at Rs14.26 billion for sale, while retaining ownership of 33 strategically significant assets, including the Roosevelt Hotel in New York and the Scribe Hotel in Paris.
Notably, the government anticipates receiving a minimum of Rs55 billion from the sale of its entire 100 percent equity stake in PIA.
The privatisation initiative aims to alleviate the financial strain on the government, which includes outstanding payments owed to entities such as the Federal Board of Revenue (FBR) and the Airports Authority.
Due to commitments under the IMF programme and budgetary limitations, the government’s capacity to provide further financial assistance to PIA has been restricted.
As part of the transaction, Rs80 billion in fresh equity has already been injected into PIA Corporation Limited, with management control handed over to the buyer consortium. The buyer is also obligated to invest an additional Rs45 billion into the airline within the next 12 months.
The government expects that upgrading the fleet and expanding new routes after privatisation will generate employment opportunities and boost tax revenues.
The first closing date for the privatisation deal was set for June 29, by which the government received Rs10 billion as payment against the sale, the documents further state.
