Privatization Commission Finalizes Agreement for PIAC Divestment

In a significant move for the Pakistan Economy, the Privatization Commission formalized a Financial Services Agreement (FASA) on Wednesday, sealing the deal for the divestment of the Pakistan International Airlines Corporation (PIACL). The signing ceremony, attended by the Minister for Privatization, Fawad Hasan Fawad, marked a crucial step in this strategic move.

The Consortium led by Earnest & Young, which had been selected after approval by the Privatization Commission Board in its meeting on November 10, 2023, was entrusted with the role of Financial Advisor. This key position involves orchestrating contract negotiations and overseeing the restructuring process. Furthermore, the financial advisor is tasked with conducting comprehensive legal, technical, and financial due diligence for the proposed divestment. A crucial aspect of this process is to arrive at a fair valuation of PIACL.

This development underscores the government's commitment to navigating the challenging economic environment successfully. Minister Fawad expressed optimism and a strong desire for the transaction's success, emphasizing the crucial role of the Financial Advisor in ensuring a seamless process. 

He reassured the Financial Advisor of the unwavering support from all institutions involved in the divestment process. The collaborative effort aims to facilitate the advisor's work, ensuring that the task is performed seamlessly and in the best interest of all stakeholders.