CCoP approves placing PIA on privatisation list

ISLAMABAD: The Cabinet Committee on Privatization (CCoP) on Monday approved to place Pakistan International Airlines (PIA) on an active list of privatisations following an amendment approved by Parliament and also granted its assent to hire Financial Adviser for transaction of PIA’s Roosevelt Hotel, New York.

According to top official sources, the PIA was converted from a corporation into a public limited company registered under the Companies Ordinance, 1984. So the legislative process was undertaken in 2016 through the Joint Session of Parliament passed PIAC (Conversion) Act, 2016, whereby, PIAC was converted into a public limited company, namely Pakistan International Airlines Corporation Limited (PIACL).

However, one major amendment i.e. ‘Explanation’ in Sub-section 4 of Section 4 was incorporated in the said Act by Parliament restricting the federal government from transferring management control in the airline business of PIACL while retaining at least 51 percent shares in such entity. It may be noted that the incorporation of such provision disturbed the privatisation process and private sector participation in PIACL could not be attained.

The Ministry of Privatization has moved the summary for the Cabinet Committee for Disposal of Legislative Cases last month's amendment of “Explanation” in Sub Section 4 of Section 4 and proposed amendment after vetting the same by the Ministry of Law and Justice.

According to an official statement issued here on Monday, Federal Minister for Finance and Revenue Senator Mohammad Ishaq Dar chaired a meeting of the Cabinet Committee on Privatization (CCoP).

The CCoP considered the proposal of the Privatisation Commission regarding the inclusion of Pakistan International Airlines Co. Ltd (PIACL) in the privatisation programme. The CCoP after deliberation decided to include Pakistan International Airlines Co Ltd (PIACL) in the list of active privatisation projects of the ongoing privatisation programme, following an amendment in the law by Parliament.

Privatisation Division presented a summary on detailed update regarding the privatization of the Roosevelt Hotel. The CCoP after discussion gave concurrence to the Privatization Commission for hiring of Financial Adviser to process/structure transaction of Roosevelt Hotel, New York, an asset of PIA Investment Limited (PIA-IL).