PIA to be privatised by March

ISLAMABAD: The government will privatize national flag carrier Pakistan International Airlines (PIA) through strategic sale by March 2016, it is learnt. Pakistan and the IMF have agreed during the ongoing review talks held at Dubai that the PIA’s privatization deal would be accomplished during the ongoing fiscal year 2015-16.
Now the tough phase of privatization under the IMF’s conditions will start as the government has committed to sell the Pakistan Steel Mills (PSM) and State Life Insurance Corporation (SLIC) during the ongoing financial year. The ambitious privatization plan had to face a major blow when the deal to sell out Heavy Electrical Complex (HEC) was cancelled when the cheque of successful buyer was dishonoured and the government had to cancel the deal.
Pakistan’s economic managers had given a written commitment to the IMF that they appointed financial advisers for share sales of the Faisalabad Electric Supply Company (Fesco) in July 2014 and plan to complete the transaction by end-March 2016.
For the Islamabad Electric Supply Company (Iesco) and Lahore Electric Supply Company (Lesco), financial advisers were hired in January 2015 for expected completion of transaction by end-June 2016.
In April 2015, the government hired financial advisers for the Gujranwala Electric Power Company (Gepco) for expected completion of the transaction by end-September 2016. It has advertised for financial advisers for Hyderabad, Peshawar, Quetta, Sukkur, and Multan Electric Supply Companies (Hesco, Pesco, Qesco, Sepco, and Mepco) to complete the process by late 2016.
Financial advisers for the Northern Power Generation Company Limited (NPGCL) were appointed in July 2014 and transaction is expected to be completed by end-December 2015.
Similarly, financial advisers for the Jamshoro Power Generation Company Limited (JPCL) were appointed in April 2015 with expected completion of the transaction by end-April 2016. In May 2015, the hiring of financial advisers for the Lakhra Power Generation Company Limited (LPGCL) and Central Power Generation Company Limited (CPGCL) was finalised with expected sale to be completed by end-December 2015.
The government developed restructuring plans for the Pakistan Steel Mills (PSM) and Pakistan Railways (PR). Specifically, financial advisers for PIA were appointed in July 2014 to explore potential options for restructuring and strategic private sector participation in the core airline business by end-December 2015. The diligence process will be completed by end-June 2015. The plan for private participation into PIA was now finalized with timeline under which this transaction would be completed by March 2016.
When contacted Chairman Privatization Commission Mohammad Zubair through SMS, he replied that it had already been planned the PIA’s transaction would be completed by March 2016 so nothing changed in this regard during the recent talks with the IMF.