Official documents obtained by The Express Tribune reveal that PIA’s assets and liabilities will be separated between the airline and a newly created holding company.
The government has disclosed that PIA’s total assets are valued at Rs171.43 billion. Upon completion of the privatization process, these assets and liabilities will be divided between the holding company and the new entity taking over PIA.
The documents indicate that from PIA’s assets worth Rs171.43 billion, Rs146.57 billion in assets will be transferred to the new management of PIA, while Rs24.86 billion in assets will remain with the holding company.
Of the national airline’s Rs830 billion deficit, Rs202 billion will be borne by PIA, while Rs628 billion will be assumed by the holding company. As a result, the new company will begin PIA operations with a deficit of Rs55.70 billion.
Further details in the documents show that the government plans to divide PIA’s operations into core and non-core segments as part of the privatization process. All assets and liabilities will be allocated between these segments.
Post-privatization, assets including aircraft valued at Rs92.62 billion, technical equipment for flight operations, operational offices, other properties, long-term deposits worth Rs6 billion, trade debts and advance deposits totalling Rs22.35 billion, and other receivables worth Rs16.83 billion will be transferred to the new PIA management.
Additionally, liabilities such as long-term financing worth Rs15.63 billion, aircraft leases amounting to Rs30 billion, employee salaries totalling Rs27.26 billion, and trade and other payables amounting to Rs121 billion will be inherited by the new company.
The documents also reveal that, due to PIA’s privatization, Rs628 billion in losses and liabilities will be transferred to the PIA holding company.
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Long-term investments worth Rs4.53 billion in PIA Investments, Skyroom Private Limited, Midway House Private Limited, and PTDC Duty-Free Shops Limited, as well as hotels including the Roosevelt, will be transferred to the holding company.
Loans from domestic and international institutions, along with the interest payable on them, amounting to Rs444 billion, will also be transferred to the holding company.
According to the documents, PIA owes Rs161 billion to the government and Rs267 billion to commercial banks, both of which will be transferred to the holding company.
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